On Monday, Binance CEO Changpeng Zhao, also known as CZ, announced that the company had decided to convert $1 billion worth of BUSD from the Industry Recovery Initiative fund into three different cryptocurrencies. Zhao noted that significant chain movements would be noticeable after the announcement.
CZ’s decision to convert $1 billion BUSD comes amid troubles for Stablecoins
Binance CEO Changpeng Zhao (CZ) announced on Monday that the company had converted $1 billion BUSD into bitcoin (BTC), BNB and ethereum (ETH). “Given changes in stablecoins and banks, Binance will convert the remaining $1 billion of Industry Recovery Initiative funds from BUSD into native crypto, including BTC, BNB and ETH. Some fund movements will happen on-chain. Transparency,” Zhao said.
After tweeting the announcement, CZ shared an Industry Recovery Initiative address and a transaction explorer link for the transfer the exchange handled. One person responded to CZ’s Twitter thread and so: “People who are a bit nervous about the latest stablecoin development will feel much more reassured.” CEO of Binance answered that he “didn’t even think of it that way. I was just discussing how to keep the funds in a safe asset. But it also works.”
At the time of writing, Binance has 7.56 billion BUSD stablecoins, according to Nansen’s exchange portfolio tool. CZ’s announcement comes as the USDC this weekend struggled to maintain parity with the US dollar following the failure of Silicon Valley Bank (SVB). Furthermore, US regulators forced Paxos to stop issuing BUSD, and billions of BUSD tokens have been removed from circulation since.
While BUSD has been under regulatory scrutiny, the stablecoin managed to stay within the $0.99 to $1 range most of the time. On March 11, 2023, BUSD dipped slightly to the $0.9848 area for a brief period, but remained stronger than five other stablecoins that deviated from $1 parity over the past weekend.
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Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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