Cryptocurrency giant Binance says it is 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 FTX crash.
Zhao points to inherent problems 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 BUSD Industry Recovery Initiative funds to native crypto, including BTC, BNB, and ETH.
Some movement of funds will happen on the chain. Transparency.”
Stablecoins have been back in the spotlight after the recent de-pegging of the USD coin from Circle (USDC).
USDC fell 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 closed its doors after a precipitous bank run last week.
The USDC price rallied over the weekend as the US Treasury announced that it will intervene to ensure that all bank depositors can access 100% of their funds.
Bitcoin price has recovered after falling to a low of $19,662 on Friday. BTC is trading at $22,283 at press time, up 9.4% in the last 24 hours.
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Featured image: Shutterstock/Larissa Kulik
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