• 23 July, 2024
Crypto Exchanges News

Binance To Transfer $1B Funds To Native Cryptos Amid SVB Chaos

Binance, the world’s largest exchange by trade volume reportedly to transfer $1 billion in industry recovery funds

Binance, the world’s largest exchange by trade volume announced a transfer of $1B funds to industry recovery fund. The exchange CEO, Changpeng Zhao comments on the state of transparency and a Proof-of-Reserve using Merkle tress by looking at the recent banking chaos.

The transfer has been made into native crypto assets like Bitcoin, Binance Coin, and Ethereum.

Silicon Valley Bank (SVB) was one of America’s 20 largest commercial banks, now under the control of the US Federal Deposit Insurance Corporation after it defaulted to pay back customers.

On Saturday, Binance and Coinbase temporarily suspended USDC stablecoin conversions after the collapse of SVB, as Circle, the USDC firm held some of cash reserve at the bank. The steps was taken due to high inflow and the increasing burden to support the conversion.

In November, Binance launched the Industry Recovery Initiative (IRI) to help crypto projects facing a liquidity crisis after the collapse of FTX.  Changpeng Zhao, Binance CEO addressed the market volatility and uncertainty and offered the conversion of the recovery fund to Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB)  as a short term solution to alleviate concerns of crypto traders.

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