Binance, one of the largest players in cryptocurrency exchange, has decided to diversify its funds from BUSD to native crypto. The amount which they will transfer is something around $1 billion.
After analyzing current banking sector collapses Binance has taken this step to secure the funds of its investors. Changpeng Zhao, the CEO of Binance took to Twitter to announce this news to its customers. The previous week was full of turmoil in the banking sector as three big banks namely, Silvergate bank, Silicon Valley Bank, and Signature bank collapsed and froze some services of their users.
As of December 31, 2022, Signature Bank has around $110.36 billion in total assets and roughly $88.59 billion in total deposits. It is a commercial bank with a New York state charter and is FDIC-insured.
On 12 March, the New York Department of Financial Services decided to take strict measures against one of the most crypto-friendly banks, Signature bank, over systematic risks.
According to reports Binance has decided to convert USD or BUSD into bitcoin, ether, and BNB coin. This decision will support the market in this volatile situation created by the bank’s collapse.
As of December 31, 2022, Signature Bank has around $110.36 billion in total assets and roughly $88.59 billion in total deposits. It is a commercial bank with a New York state charter and is FDIC-insured. Binance’s decision to diversify BUSD may help in risk management to face volatility in the current market.
