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Binance moves to acquire banks in an attempt to bridge crypto and TradeFi

 

By Nerly Shammah Nov 03, 2022.

 

 

Following a notable investment in Elon Musk Twitter takeover which CZ, Binance CEO explained to be a support for free speech, Binance is looking to bridge the gap between traditional finance and cryptocurrency. 

 

 

In entirety, 

 

The world's largest cryptocurrency exchange by users worldwide and trading volume is looking to acquire a bank to fill the space between crypto and traditional finance. 

 

The CEO, CZ  reportedly spoke in a Web Summit in Lisbon, Portugal, on Wednesday, November 2, 2022, saying:

 

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There are people who hold certain types of local licenses, traditional banking, payment-service providers, even banks. We’re looking at those things,” Zhao said in an interview at the Web Summit conference in Lisbon, without identifying a target. “We want to be the bridge between crypto and the traditional, financial world.”

 

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Following a notable event of market meltdown observed in the crypto industry, leading to several projects going bankrupt, Binance has been one of the few that is solvent of about $1 billion of which the CEO, Changpeng Zhao popularly known as "CZ" has previously stated that the exchange is willing to bail out struggling projects and also push through deals for the benefits of the ecosystem. 

 

His statements point to the growing interconnections between the crypto space and the traditional banking system, the billionaire CEO also noted that he's on the push for all there is to gain as he explains the often price reactions of the stock markets of banking institutions after signing a deal with Binance. 

 

He said:

 

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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 upsides.

 

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At the time of writing, no specific bank name or names has been released.