With $1 Billion In Cash, Binance Goes Shopping For Banks

With $1 Billion In Cash, Binance Goes Shopping For Banks

Binance willing to spend $1 billion aim to  be the bridge between crypto and the traditional financial world.

Some of the well-known crypto businesses in the sector have suffered greatly during the 2022 crypto winter. For giants like Binance and FTX with cash in hand, it has been an good time to add more companies to their bag

Binance, a cryptocurrency exchange, stated that it is willing to spend $1 billion on some significant market acquisitions this year. Recent developments indicate that Binance is now aiming to purchase banks in order to close the gap between conventional banking and the cryptocurrency business. Changpeng Zhao, the CEO of Binance, said the following when speaking at the Web Summit in Lisbon:

“There are people who hold certain types of local licenses, traditional banking, payment-service providers, even banks. We’re looking at those things. We want to be the bridge between crypto and the traditional, financial world.”

CZ's remarks amply demonstrate how closely connected traditional finance and the cryptocurrency markets are getting interlinked by the day. Therefore, it would be ideal if the two facets worked together rather than in competition with one another. BlackRock and Goldman Sachs, two of the largest financial organizations, are already making deeper inroads into the cryptocurrency market.

In August 2022, BlackRock and Coinbase will collaborate to price the exposure of its institutional clients to digital assets despite the crypto winter this year.

Binance Expanding Its Footprint

Changpeng Zhao, the CEO of Binance, stated that both partial and full acquisitions are possible. He views this as a chance for Binance to profit from the anticipated rise in the bank's stock price following the conclusion of a contract with Binance. He further added:

“What we have found is when banks work with us, we drive so many users to them, so the bank’s valuation goes up exponentially, like why don’t we just invest in them as well, so that we capture some of the equity upside”

Zhao is a Twitter investor who just offered Elon Musk $500 million as part of the Twitter purchase. Additionally, he stated his desire to join the Twitter board upon Elon Musk's approval. Additionally, Binance is prepared to offer blockchain-based solutions to address the bot problem on Twitter.