2 years ago
Changpeng Zhao has hinted astatine the anticipation of purchasing a slope successful airy of caller problems with crypto-friendly banks.
As contagion continues to dispersed from the Silicon Valley Bank and ongoing distress from crypto-friendly lenders similar Silvergate, galore crypto firms and VCs are preparing for worst-case script spillovers, including respective starring exchanges — immoderate of whom person floated the thought of swallowing up banks successful the past.
The concern has predictably caught the attraction of Binance’s founder.
Two days ago, CZ shared a quality nonfiction from 2022 to his 8.2 cardinal Twitter followers, a Tweet linking to an nonfiction from Yahoo! Finance stating that Binance had erstwhile considered purchasing a bank.
Is it clip yet? Not sure. 
https://t.co/IR4XscGw29
— CZ 
Binance (@cz_binance) March 11, 2023
Binance precocious made respective investments successful accepted institutions, including a $200 cardinal strategical concern successful media steadfast Forbes successful 2022. The crypto speech has besides backed Elon Musk’s acquisition of Twitter.
Meanwhile, Binance is not unsocial successful considering a determination into accepted finance; Kraken has besides stated its volition to unfastened a bank.
Read more: Kraken eyes ain slope amid regulatory scrutiny
The illness of FTX has enactment crypto-friendly banks nether accrued scrutiny, with the caller failures of SVB and Silvergate adding to the unit connected these institutions.
CZ supports much stablecoins.
The Binance CEO besides Tweeted his enactment for different stablecoins successful the broader ecosystem. He was noting Binance’s caller summation of galore stablecoin pairs.
Supporting aggregate stablecoins, always. More to come. https://t.co/5W1mHzOjoG
— CZ Binance (@cz_binance) March 11, 2023
CZ besides speculated that “it feels similar determination is simply a coordinated effort to unopen down crypto-friendly banks” similar Signature.
“Banks are a disk to fiat-backed stablecoins,” helium added successful a follow-up Tweet.
The caller failures of crypto-friendly banks, specified arsenic SVB and Silvergate, person further highlighted the request for stablecoins to hedge against accepted concern risk.
With CZ’s statements and actions suggesting that helium recognizes the imaginable hazard of stablecoins existing wrong accepted finance, his doubling down and enactment for different stablecoins and the broader stablecoin ecosystem bespeak that helium sees stablecoins arsenic a invaluable plus and thing that should beryllium defended from accepted fiscal industries, immoderate of whom person a vested involvement successful seeing entities specified arsenic stablecoins fail.
What’s wide is that the crypto manufacture continues to germinate and either integrate oregon disintegrate with accepted finance. As such, stablecoins are to play an progressively important relation successful immoderate the aboriginal dynamic of crypto is apt to look like.
It’s worthy noting that not each stablecoins are created equal, and immoderate whitethorn beryllium much susceptible to definite risks than others. Additionally, galore stablecoin issuers are moving to code these risks and amended transparency and oversight successful the industry.
The station Binance CEO CZ ‘Banks are a hazard to fiat-backed unchangeable coins’ successful absorption to SVB, USDC Depegging appeared archetypal connected CryptoSlate.
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