Binance, one of the largest cryptocurrency exchanges in the world, has announced its intend to switch the remaining $1 billion funds from the Industry Recovery Initiative, which is currently in BUSD, to cryptocurrency in its native form, including ETH, BTC, and BNB. The report comes when the crypto market faces significant disruptions due to bank failures, including Silicon Valley Bank and Signature Bank.
The move by Binance to convert the funds into native crypto is aimed at increasing transparency and reducing further negative effects of FTX. The exchange had earlier announced the Industry Recovery Initiative in November 2022 to help projects that are otherwise strong but face a liquidity crisis.
The announcement has positively impacted the crypto market, with Bitcoin’s price hitting an intraday high of around $22,600 on Binance, currently up by 6% for the day. Ethereum has also increased by approximately 8%, while BNB has surged by around 10%. The market has been volatile in recent weeks due to various factors, including regulatory concerns, environmental impact, and market correction.
The recent bank failures have added to the uncertainty, leading to a flight to safety and a rise in demand for stablecoins. However, Binance’s move to convert the funds into native crypto has been well-received by the market, indicating a growing preference for digital assets over traditional banking systems.
The Industry Recovery Initiative by Binance is a timely intervention that will help support projects facing liquidity issues, thereby reducing the risk of further market disruption. The move towards greater transparency and shifting away from stablecoins could also have long-term implications for the crypto market as it seeks to establish itself as a viable alternative to traditional financial systems.