The management of the Binance exchange is considering options for converting capital from the stablecoin BUSD to the largest digital currencies – bitcoin, ether and Binance Coin (BNB).
According to the head of the trading platform, Changpeng Zhao, funds in BUSD will be withdrawn from the fund with a total amount of up to $1 billion, which was previously created to support projects representing the blockchain industry. They will be converted into BTC, ETH and BNB.
Binance CEO emphasized:
Given the changes that have affected crypto projects, the banking sector and stablecoins, the exchange decided to convert $1 billion of IRI fund assets into bitcoin, ether and BNB.
The Binance exchange announced the creation of the fund back in November last year after the crash of FTX.
The initiative has been supported by many crypto companies including Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group.
Binance has invested more than $1 billion in the Industry Recovery Initiative fund. Changpeng Zhao attributes his team’s decision to increased pressure on the stablecoin market.
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