Binance, the world’s leading cryptocurrency exchange, is considering buying a bank, the company’s CEO Changpeng Zhao revealed.
Changpeng Zhao (CZ), the CEO of Binance, the world’s leading cryptocurrency exchange, has revealed that the company is weighing the options of buying a bank.
He made this statement while speaking at the ongoing Web Summit conference in Lisbon.
CZ’s comment comes a month after he revealed that Binance has more than $1 billion to spend on deals and acquisitions in 2022. Although he revealed that Binance is open to acquiring a bank, he didn’t mention any targets. He said
“There are people who hold certain types of local licenses, traditional banking, payment-service providers, even banks. We’re looking at those things. We want to be the bridge between crypto and the traditional, financial world.”Changpeng Zha Binance CEO
His comments show a growing trend in the cryptocurrency space. An increasing number of traditional financial institutions, including Goldman Sachs and BlackRock, are establishing their presence in the crypto space.
The rising adoption is blurring the line between cryptocurrencies and the traditional financial ecosystem. With Binance looking to acquire a bank, it wouldn’t be surprising to see more crypto companies acquire traditional financial institutions over the coming years.
CZ added that Binance is open to minority investments or a full acquisition. According to the CEO, acquiring a bank is an opportunity for Binance to capitalize on the expected increase in a bank’s share price after signing a business agreement. He concluded that;
“What we have found is when banks work with us, we drive so many users to them, so the bank’s valuation goes up exponentially, like why don’t we just invest in them as well, so that we capture some of the equity upsides.”Changpeng Zha Binance CEO
Binance has been expanding its presence globally in recent months. Over the past few months, Binance has gained regulatory approvals in New Zealand, Cyprus, and Kazakhstan.