• Binance is converting over $1 billion of its stable currency BUSD into Bitcoin, Ethereum, and other digital assets.
• The goal is to help crypto companies and banks that are suffering from liquidity crises due to recent bank failures.
• Bitcoin prices have risen by more than 9% in the past few days, showing the strength and stability of the world’s largest cryptocurrency.
$1 Billion Conversion From BUSD
Binance – the world’s largest and most popular digital currency exchange – is converting more than $1 billion of its stable currency BUSD (Binance USD) into bitcoin, Ethereum, and various other digital assets. This news was released in a tweet issued by the company’s CEO Changpeng Zhao.
Goal: Help Crypto Companies & Banks
The plan is to assist crypto companies and banks that are not necessarily facing collapse but have been going through liquidity crises due to recent bank failures such as Silvergate and Silicon Valley Bank. These banks had been friendly towards cryptos and tech enterprises prior to their closure.
USDC Peg To USD Lost
Worries grew further when Circle’s USDC coin lost its peg to the U.S dollar while Silicon Valley Bank handled its reserves; however, it regained its peg shortly afterwards. This has caused Binance to take action by conducting this conversion from BUSD in an effort to remain steady despite these external factors out of their control.
Bitcoin Prices Rise By 9%
The news comes at a time when bitcoin prices have shot up by more than nine percent adding about $3,000 to its price over the course of just a few days. This shows how strong and stable world’s number one digital currency has become since exiting bear market conditions earlier in 2022 .
The move made by Binance proves that they can remain resilient even during times of uncertainty while also aiding those who need it most within the crypto space – something which many traders believe should signal a true end to bear markets for good.