Crypto giant Binance says it’s converting $1 billion of its dollar-pegged stablecoin BUSD into Bitcoin, Binance Coin and Ethereum.
Binance CEO Changpeng Zhao says this represents the remainder of the company’s industry recovery fund, which is designed to support struggling players in the industry after the collapse of FTX.
Zhao points to inherent issues with fiat-backed stablecoins as the reason for the billion-dollar swap.
“Given the changes in stablecoins and banks, Binance will convert the remainder of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including BTC, BNB and ETH.
Some fund movements will occur on-chain. Transparency.”
Stablecoins have once again been in the spotlight after the recent depeg of Circle’s USD Coin (USDC).
USDC dropped to a low of $0.84 over the weekend as it became clear that Circle held $3 billion of its $40 billion reserves at Silicon Valley Bank, which shut its doors after an abrupt bank run last week.
The price of USDC recovered over the weekend as the U.S. Treasury announced it will step in to ensure all depositors at the bank are able to access 100% of their funds.
The price of Bitcoin has recovered after dropping to a low of $19,662 on Friday. BTC is trading at $22,283 at time of publishing, up 9.4% in the last 24 hours.
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