Binance is investigating the benefits of acquiring a bank, according to a report.
According to reports, the world’s largest crypto trading platform by volume is considering purchasing banks.
According to a new Bloomberg article, Binance is examining the benefits and drawbacks of acquiring financial institutions as traditional finance gets increasingly intertwined with the digital assets business.
Binance CEO Changpeng Zhao has stated that the company intends to bridge the gap between digital assets and traditional finance.
According to the article, Zhao made his comments during a crypto conference in Portugal.
“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.”
Zhao went on to remark that the value of banking institutions increases rapidly when they establish deals with Binance since the crypto exchange onboards new consumers, something he wants to profit on.
“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 upside.”
Binance previously stated that it had put aside around $1 billion for acquisitions. At the time, Zhao stated that Binance was focused on buying distressed crypto lending organizations that were experiencing financial difficulties as a result of the bear market that began in May.
Binance just contributed $500 million to billionaire Elon Musk’s takeover of social media behemoth Twitter, claiming that the investment is valuable since social media and Web3 will merge with Musk at the helm.
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