The chief executive officer of the world’s largest crypto exchange, Changpeng Zhao, said that traditional banks could be added to Binance’s business plan, as the crypto exchange seeks to become a bridge between traditional finance and cryptocurrencies, according to a report by Bloomberg on Thursday.
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Fast facts
- Zhao did not specify which banks might be under consideration, but said they are looking at financial institutions with local licenses, including traditional banks and payment service providers, in comments made in an interview during a web summit in Lisbon, according to Bloomberg.
- Global regulators are developing licensing regimes to regulate cryptocurrencies, including in the United Arab Emirates, Singapore, and Hong Kong, which recently announced its determination to restore its standing as a crypto hub.
- Zhao said Binance’s partnership with a bank usually results in a significant increase in the bank’s valuation, and he hopes to reap the benefits of the increased valuation through such an investment. Binance’s investment in a bank could be a minority investment or an outright acquisition, Zhao said.
- In October, Binance announced a US$500 million investment to back Elon Musk’s acquisition of Twitter. In June, Binance invested US$200 million in Forbes.
- Binance is continuing to pursue its global expansion, most recently targeting the Philippines, Turkey and South Korea.
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