The largest crypto exchange in the world, Binance, announced that they recently converted a whopping $1 billion of their own stablecoin BUSD into other cryptocurrencies. These cryptocurrencies, according to Binance CEO Changpeng Zhao (CZ), include bitcoin (BTC), ethereum (ETH) en binance coin (BNB).
Binance BUSD
CZ reported that the transaction was successfully completed and also shared the details of the transaction in question. Remarkable is the fact that the huge transaction took only 5 seconds and cost a mere $1.29 in transaction fees.
This while no less than $ 980 million was sent. What makes the transaction even more remarkable is the fact that banks were closed almost everywhere at the time. According to CZ, this testifies to the real value of crypto technology.
The transfer txid. Took 15 seconds and costs $1.29. Imagine moving $980 million through a bank before banking hours on a Monday. https://t.co/ViCppASVFK
— CZ 🔶 Binance (@cz_binance) March 13, 2023
“Given the changes in stablecoins and banks, Binance will convert the remaining funds from the $1 billion Industry Recovery Initiative from BUSD to native crypto, including #BTC, BNB and ETH. Some fund movements will occur on-chain. Transparency.”
It is quite possible that this action by Binance contributed to the nice increase we saw in the prices of many cryptocurrencies. After all, a considerable amount of BTC and ETH was bought, which caused buying pressure.
Binance takes no risk
CZ also states very clearly the reason for converting the large amount of BUSD. It has everything to do with the current situation at banks in the United States and the increased distrust from the US government towards stablecoins such as BUSD.
Earlier today, the crypto news reported that just before Binance completed the transaction, the third American bank went under in a short time. This time it was Signature, where Binance was also a customer. Naturally, this again increases the stress on the market.