Binance converts 1 billion Busd into BTC, ETH and BNB

Binance wants to remain vigilant in the face of the panic that has gripped the stablecoin sector over the weekend. The platform has just decided to act to avoid the worst in the current “changes” about stablecoins and banks. The world’s largest exchange says this morning that it will convert its emergency fund in BUSD to BTC, ETH and BNB.

As a reminder, the stablecoin world was particularly shaken over the weekend, with the USDC losing parity with the dollar until yesterday. The stablecoin DAI is also experiencing difficulties. Following the bankruptcy of Silicon Valley Bank, a bank holding some of the cash reserves of its issuer Circle, the USDC also lost parity with the US dollar overnight on March 10.

These are the reasons behind the decision of Changpeng Zhao, the famous founder of Binance. He has just officially announced the conversion of an estimated $1 billion reserve fund into BUSD in the form of “native cryptocurrencies” such as BTC, ETH or BNB.

CZ stated:

Given the changes in stablecoins and banks, Binance will convert the remaining funds from the $1 billion BUSD Industry Recovery Initiative into native cryptomineries, such as BTC, BNB and ETH. Some movement of funds will occur on-chain. Transparency.

CZ also notes that some fund movements will be visible “on-chain,” and provides the address in question. The company was indeed able to transfer $980 million in a few minutes, for a fee of $1.29.