Binance chief weighs up purchase of traditional banks

Binance weighs buying traditional banks.

Binance is considering the purchase of banks to bridge the gap between traditional finance and the crypto industry. This was stated by CEO Changpeng Zhao in an interview with Bloomberg.

In October Zhao spoke about plans for the exchange to allocate more than $1 billion to acquiring crypto companies. According to him, Binance is also looking at holders of various local licenses, such as banking or payments licenses.

“We want to be a bridge between cryptocurrencies and the traditional financial world,” he said.

In Zhao’s view, digital assets and TradFi are becoming increasingly interconnected. Despite the market downturn, major institutions such as Goldman Sachs Group or BlackRock continue to deepen their foray into the crypto industry.

The head of Binance said the exchange is prepared for both buying minority stakes in banks and full acquisitions.

The company also sees the potential to profit from a rise in the stocks of financial institutions as a result of a deal with the world’s largest crypto exchange.

“We found that when banks work with us, we attract so many users that their valuations rise geometrically. Why not simply invest in them to profit from capital gains?” — Zhao asked himself.

In 2020, Binance allocated strategic investments of $200 million to the Forbes media group and $500 million to finance Elon Musk’s Twitter acquisition deal.

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