Changpeng Zhao Converts 1 Billion BUSD To Bitcoin, BNB, And Ethereum, Crypto Market Immediately Rises

Binance founder Changpeng Zhao. (Photo; Doc. MoneyWeek)

JAKARTA Binance boss, Changpeng Zhao or better familiarly called CZ, is reported to have converted 1 billion US dollars (Rp 15.3 trillion) in the form of a stablecoin BUSD to three different cryptocurrencies. CZ announced this on Monday, March 13, 2023.

Zhao outlined a move to convert $1 billion of BUSD from the Industry Recovery Initiative to Bitcoin (BTC), BNB, and Ethereum (ETH). He added that significant onchain movements would be visible following the announcement.

Binance CEO Changpeng Zhao (CZ) announced on Monday, March 13 that the company had converted 1 billion BUSD into bitcoin (BTC), BNB, and ethereum (ETH).

"Given the changes to stablecoins and banks, Binance will convert the remaining $1 billion from the Industry Recovery Initiative from BUSD to genuine cryptocurrencies, including BTC, BNB, and ETH. Some of the fund movements will occur onchain. Transparency," Zhao said in a Twitter thread.

After announcing via Twitter, CZ shared addresses for the Industry Recovery Initiative and transaction explorer links for transfers handled by the exchange.

Someone responded to CZ's Twitter thread and said: "People who have been a little anxious about the recent development of stablecoins will feel calmer." Binance's CEO replied that he " doesn't even think about it. I'm just discussing ways to keep funds in secure assets. But that too."

Currently, Binance holds 7.56 billion BUSD, according to the Nansen stock exchange portfolio tool. The CZ announcement came at a time when USDC had problems last weekend in maintaining parity with the US dollar after the Silicon Valley Bank (SVB) failure.

According to a Bitcoin.com News report, US regulators forced Paxos to stop the issuance of BUSD, and billions of BUSD tokens have been removed from circulation since then.

Despite the BUSD facing regulatory scrutiny, the stablecoin managed to last in the range of 0.99 US dollars to 1 US dollar in most of the time. On March 11, 2023, BUSD fell slightly to the range of 0.9848 US dollars for a short period. Even so, BUSD is still stronger than five other stablecoins that deviated from parity of 1 US dollar over the weekend.

CZ's decision to convert BUSD into three other cryptocurrencies occurred at a time when many problems hit stablecoins, including USDC and BUSD itself. In this case, Binance tries to maintain the security of funds by transferring them to more stable crypto assets and not being affected by changing market conditions.