On Monday, Binance CEO Changpeng Zhao, also known as CZ, announced that the company has decided to convert $1 billion worth of BUSD from the Industry Recovery Initiative fund into three different cryptocurrencies. Zhao noted that major moves on the channel would be noticeable after the announcement.
CZ’s decision to convert $1 billion BUSD comes amid troubles for stablecoins
Changpeng Zhao, CEO of Binance (CZ) announcement on Monday that the company had converted $1 billion BUSD into bitcoin (BTC), BNBand ethereal (ETH). “Given the changes in stablecoins and banks, Binance will convert the remaining $1 billion of BUSD Industry Recovery Initiative funds into native crypto, including BTC, BNBAnd ETH. Some fund movements will occur on a chain. Transparency,” Zhao said.
After tweeting the announcement, CZ shared an address for the Industry Recovery Initiative and a transaction explorer link for the exchange-managed transfer. One person replied to CZ’s Twitter thread and said“People who are a little pissed off about recent stablecoin developments will feel much more reassured.” Binance CEO replied that he “didn’t even think of it that way. I was just discussing how to keep the funds in a safe asset. But it also works.
At the time of writing, Binance holds 7.56 billion BUSD stablecoins, according to Nansen’s exchange wallet tool. CZ’s announcement comes as the USDC struggled over the weekend to maintain parity with the US dollar following the collapse of Silicon Valley Bank (SVB). Additionally, US regulators forced Paxos to stop issuing BUSD, and billions of BUSD tokens have since been withdrawn from circulation.
While BUSD has been under regulatory scrutiny, the stablecoin has managed to stay within the $0.99-$1 range most of the time. On March 11, 2023, BUSD dipped slightly in the $0.9848 range for a short time, but remained stronger than five other stablecoins that deviated from the $1 parity over the past weekend.
What do you think of Binance’s decision to convert $1 billion BUSD to bitcoin, bnb and ethereum? Share your thoughts in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
