Binance CEO Changpeng “CZ” Zhao on Monday said Binance will convert the remaining funds in the Industry Recovery Initiative into Bitcoin (BTC), BNB, and Ethereum (ETH) due to the collapse of crypto-friendly banks and stablecoins depeg events.
Amid the bank and stablecoin crisis, Binance CEO “CZ” took to Twitter to announce that Binance is converting the remaining $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including Bitcoin, BNB, and ETH.
“Given the changes in stable coins and banks, Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including BTC, BNB and ETH. Some fund movements will occur on-chain. Transparency.
According to Etherscan data, the wallet linked to Bianance’s Industry Recovery Initiative had 985,088,975.25 BUSD worth $979,867,018.59. The difference in value is due to depeg of many stablecoins amid the collapse of crypto-friendly banks.
Binance initiated the BUSD conversion through Uniswap on March 13 at 05:31:47 AM UTC, as per the transaction detail. Whale Alert also reported 985,088,975 BUSD (981,641,163 USD) transferred from Binance Recovery Fund to Binance.
After the collapse of Silvergate Bank and Silicon Valley Bank, Signature Bank is closed by New York state regulators. Binance CEO stated that this seems to be a “coordinated effort to shut down crypto-friendly banks”.
Notably, Binance on Saturday discontinued its Binance USD (BUSD) Auto-Conversion policy introduced last September. Binance CEO “CZ” said Binance will now support multiple stablecoins including USDT, USDP, and TUSD. Users can convert their BUSD to other stablecoins until 06:00 AM UTC, March 18.
Bitcoin, BNB, and Ethereum prices jump over 9%, 9%, and 8%, respectively. BTC price is trading at $22,463, with a 24-hour high of $22,728. Meanwhile, BNB price and Ethereum price are trading at $305 and $1,606.
The prices are moving higher after the news and the global crypto market is above $1 trillion market cap after a 7% pump in the last 24 hours.
Also Read: Bitcoin (BTC) Price Shoots Over 8%, Why Is the Market Up Despite Bank Collapses?
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