Binance CEO Zhao Considering Buying Banks: Report

Zhao wants his crypto exchange to become a bridge between traditional finance and crypto, according to a Bloomberg report.

AccessTimeIconNov 2, 2022 at 6:27 p.m. UTC
Updated Nov 2, 2022 at 7:41 p.m. UTC

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

Binance founder and CEO Changpeng Zhao is looking into potentially buying banks as a way of bridging the gap between the worlds of traditional finance and crypto, according to an interview Zhao did with Bloomberg at the Web Summit conference in Lisbon.

Zhao did not name any specific targets, and also said he's open to either minority investments or a full acquisition.

“There are people who hold certain types of local licenses, traditional banking, payment-service providers, even banks. We’re looking at those things,” Bloomberg quoted Zhao as saying.

Zhao also noted that investing in banks is a smart strategy for Binance because when the crypto exchange works with a bank, Binance often winds up driving many new users to it, increasing the bank’s valuation.

Zhao has said in the past Binance has over $1 billion to spend on acquisitions, and he recently committed $500 million to help fund Elon Musk’s $44 billion takeover of Twitter. So far this year, Zhao's acquisition strategy has focused on expanding into publishing, decentralized finance (DeFi) and non-fungible token (NFT) projects.

UPDATE (Nov. 2, 18:48 UTC): Added detail to Zhao's comments in first paragraph.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.