Changpeng Zhao, the founder and CEO of the world’s largest cryptocurrency exchange, Binance, has announced that the company could be looking to buy banks, just days after revealing a $500 million investment in Twitter.
Binance Considers Buying Banks
CZ, in an interview during a web summit in Lisbon, noted that Binance could potentially buy banks in a bid to bridge the gap between the worlds of traditional finance and the crypto industry.
Although CZ did not mention a possible list of banks, he explained that the exchange will consider financial institutions with local licenses, including traditional banks and payment service providers.
According to the Binance boss, his exchange’s partnership with a bank usually results in a significant increase in the bank’s valuation. He hopes to reap the benefits of the increased valuation through such an investment.
Other Alternatives for Binance
He also adds that the company’s involvement banks could be anything from a minority investment to an outright acquisition. According to CZ, Binance could spend up to $1 billion shopping for banks.
Acquisitions, according to the Binance chief, will help banks increase their user bases and valuations. Despite the crypto winter of 2022, Binance has invested in over 67 projects, with potential for more.
On the Flipside
- CZ expressed his desire to join the Twitter board if Elon Musk says so and provide blockchain-based solutions to tackle the bots issue on the platform.
Why You Should Care
The comments by the Binance boss clearly highlight the increasingly close relationship between the traditional finance and crypto markets.
The investment of Binance in Twitter is covered in:
Changpeng Zhao Binance Confirms $500 Million Equity Investment in Musk’s Twitter Takeover
Read more on the potential of the deal below:
CZ Reveals Monetization and Free Speech Drove Binance’s Investment, Plans ‘To Bring Twitter Into Web 3.0’