Binance, a cryptocurrency exchange, has stated that it is planning to invest $1 billion this year on key market acquisitions. As per recent developments, Binance is now looking to acquire banks in order to bridge the gap between traditional banking and the crypto industry.
With an American media outlet at the Web Summit conference in Lisbon that he is considering potentially buying banks to bridge the gap between the worlds of traditional banking and crypto.
“There are individuals with specific local licenses, traditional banking, payment-service providers, and even banks. We're looking into that,” CZ told the American media outlet.
CZ also stated that investing in banks is a smart strategy for Binance because when the crypto exchange collaborates with a bank, Binance frequently drives a large number of new users to the bank, improving the bank's valuation.
Binance CEO Changpeng Zhao went on to say that “the leading cryptocurrency exchange is ready to spend more than $1 billion on acquisition deals.”
However, CZ did not specify any specific targets and stated that he is open to either minority investments or full acquisitions.
Binance other investments
Despite the massive market crash, Binance, which has already invested in 67 projects in 2022, sees plenty of prospects in the industry. According to CZ, the company is interested in agreements in industries such as gaming, e-commerce, and others. Now, banks are among its prospective acquisition targets.
Recently, CZ offered $500 million to Elon Musk's $44 billion acquisition deal of Twitter. So far this year, Zhao's acquisition strategy has centred on startups related to publishing, decentralised finance (DeFi), and non-fungible tokens (NFT).
In September, Binance partnered with embedded payments finance platform Inswitch to enable the latter to offer Binance Pay to all Latin American retailers. The latest functionality will enable merchants to receive payments in over 50 cryptocurrencies instantly, as well as support new items or business models and accept recurring payments globally.
What’s Next?
Despite all of this activity, many financial leaders are still unsure about how to best use digital currencies, how to avoid the issues they bring, how to manage transactions into and out of fiat (government-issued) currency, and what precautions and procedures to follow.
Nonetheless, both large and smaller banks are frequently trusted because of their track records in protecting their customers' investments. Cryptocurrencies can assist them in increasing their competitiveness in today's market.
What do you think about CZ's plans to acquire banks in order to bridge the gap between the two financial sectors? Share your thoughts below in the comment section.
Read also: Twitter payments, Binance suggests using BNB, Dogecoin, and MASK
