Binance to Convert $1 Billion of BUSD: Crypto Market Reaches Stability
• Binance – the world’s largest and most popular digital currency exchange – is converting more than $1 billion of its stable currency BUSD (Binance USD) into bitcoin, Ethereum, and various other digital assets.
• This comes at the height of several bank failures, including those that were friendly towards crypto and tech enterprises.
• Bitcoin shot up by more than nine percent and added about $3,000 to its price over the course of just a few days.
Binance Converting Stable Asset
Binance – the world’s largest and most popular digital currency exchange – is converting more than $1 billion of its stable currency BUSD (Binance USD) into bitcoin, Ethereum, and various other digital assets. The news came about in a tweet issued by the company’s CEO Changpeng Zhao. The goal is to help crypto companies and banks that are not necessarily in danger of collapsing altogether but that are enduring liquidity crises.
Recent Bank Failures
The news of the financial conversion Binance is initiating comes at the height of several bank failures, including those – such as Silvergate and Silicon Valley Bank – that were friendly towards crypto and tech enterprises. These failures have been labeled, by some analysts, as among the worst since the 2008 financial crisis and Great Recession. During all this time Silicon Valley Bank housed the reserves of Circle’s USDC coin, another stable asset similar with BUSD; however it lost its peg to the U.S. dollar temporarily until it was regained later on.
Fear Over Asset Safety
It appears that given these events there is now an increased fear regarding asset safety which has driven Binance to initiate this conversion from their own one billion Industry Recovery Initiative funds from BUSD to native crypto including BTC, BNB, and ETH in order to ensure their own continual stability as an exchange platform.
Bitcoin Price Spike
Despite all this happening bitcoin shot up by more than nine percent within a couple days adding about $3 showing a true testament to its growing strength as a digital currency with traders believing it’s final hours of bear market may be over soon as well..
In conclusion despite recent events both good and bad such as banking closures or bitcoin price spikes there still remains a fear amongst investors regarding asset safety leading many exchanges like Binance to take steps towards protecting their own interests while also aiding those affected by such closures or market volatility in any way they can – even through conversions from their own funds if need be!