- Binance is considering purchasing a bank soonly, as per Changpeng Zhao.
- CZ stated that the exchange is open to minority investments.
Changpeng Zhao, the Binance CEO, has the desire to venture into traditional finance. According to the latest report, the world’s largest trading platform’s founder, CZ, is considering purchasing a bank soon to bridge the gap between TradFi and cryptocurrency. For this, the exchange may invest more than $1 billion in acquisition deals this year, as Bloomberg reported.
At the Web Summit conference in Lisbon, CZ stated:
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.
Binance to Debut on TradFi
The Binance CEO expressed that the exchange is open to minority investments or a full acquisition. He further stated that investing in banks is a wise move for Binance. Because, when the exchange collaborates with a bank, it frequently attracts a large number of new users, raising the bank’s value.
Zhao 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.
Moreover, Binance has already invested in around 67 projects in 2022. The platform is focusing more to engage in various sectors such as gaming, e-commerce, DeFi, NFT, and Metaverse. However, the exchange’s new move towards traditional finance will likely provide more benefits to the users. Additionally, CZ announced that Binance endorsed a $500 million investment in Musk’s $44 billion Twitter takeover deal last week.
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