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Binance Is Considering Buying Banks, CEO Reveals

UTC by Ibukun Ogundare · 3 min read
Binance Is Considering Buying Banks, CEO Reveals
Photo: Depositphotos

According to the Binance chief, bank acquisition will create a connection between traditional finance and crypto.

Binance founder and CEO Changpeng Zhao, also CZ, is considering buying banks. The exchange founder talked about this vision while speaking in an interview with Bloomberg at the Web Summit Conference in Lisbon. This is indeed about to be a huge turnaround for Binance if or when it eventually buys the banks. It is safe to say that all required is an exchange to test the space, and other top exchanges will begin to follow. As a matter of fact, CZ has just found a way to emphasize the increasing relationships between financial institutions and crypto assets. The likes of Goldman Sachs (NYSE: GS) and BlackRock Inc (NYSE: BLK) have made debuts into the crypto space. And despite the declining crypto market, the companies are pushing deeper into the industry.

Binance Wants to Buy Banks to Bridge the Gap between TradFi and Crypto

According to the Binance chief, bank acquisition will create a connection between traditional finance and crypto. That is, the banks will close the gap separating cryptocurrencies from conventional finance. Although he did not specify the targeted banks, the Binance CEO said he does not mind either minority investments or full acquisitions. He added:

“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.”

Also, Zhao said investing in banks is a smart choice for Binance. He noted that when Binance works with banks, it often attracts new users to them and influences their valuations.

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

Binance to Spend Over $1B on 2022 Acquisitions

Meanwhile, CZ said last month that Binance could be spending more than $1 billion on acquisitions this year. The company recently contributed $500 million to support Elon Musk’s Twitter takeover, which is worth $44 billion. The crypto exchange has invested in up to 67 projects since the year started. Despite the ongoing turmoil in the crypto market, Zhao still sees opportunities in the sector. The businessman is considering deals in gaming, e-commerce, and now, a potential acquisition of banks. While Binance has committed to 67 projects in 2022, the company invested in 73 projects in 2021. In total, the crypto exchange spent $140 million on the projects last year.

With less than two months till the end of the year, the world expects Binance to continue its investments and acquisition spree.

Binance News, Blockchain News, Cryptocurrency News, News
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