The CEO of the biggest cryptocurrency exchange in the world in terms of market value, Changpeng Zhao, has stated his desire to enter the realm of conventional finance or TradFi. Zhao has hinted that a bank takeover is on the horizon, backed by his $1 billion war chest.
While at the Web Summit conference in Lisbon, Bloomberg claims that Zhao discussed his plans to enter the TradFi market.
Binance CEO Zhao says they are considering buying a bank.
— unusual_whales (@unusual_whales) November 2, 2022
The CEO of Binance has said explicitly that a minority interest investment is on the table in addition to completing the acquisition.
One of the reasons, according to Zhao, is that a business deal might boost a bank’s stock price.
Just last month, Binance launched a $1 billion growth fund that would be used for, among other things, investing in people’s skills and cryptocurrency. Five hundred million dollars have been set aside from this pool for investments in areas such as the banking sector, distributed computing, gaming, the metaverse, virtual reality, etc.
Users will likely be able to engage with Web3 and crypto in general via the conventional banking mechanism, which will serve as a bridge between the two. The timing of Changpeng Zhao’s TradFi campaign couldn’t be better, as conventional financial institutions are aggressively looking at ways to enter the exciting world of cryptocurrency.
Polygon’s co-founder Sandeep Nailwal made the announcement earlier today that J.P. Morgan has completed the first live DeFi transaction in partnership with Singapore’s Monetary Authority. Considering the widespread selloff, the sector has undergone due to the ongoing crypto winter, this is a significant milestone for crypto adoption.