Venture capital investments have significantly decreased since 2021 due to the $2 trillion market loss brought on by the cryptocurrency inversion, also known as the “Crypto Winter.” Some of the well-known crypto companies in the sector have experienced hardships and turmoil, and many have had to shut shop and declare bankruptcy.
However, the opportunity has never been better for industry giants like Binance and FTX to add new businesses to their portfolios that have extra cash to spare.
Acquisitions on the Horizon
Binance, a cryptocurrency exchange, recently made headlines when it announced it’s plans to spend $1 billion on strategic acquisitions this year, piquing the interest of investors already interested in the assets it trades.
Recent news indicates that Binance is actively acquiring banks as a means of bridging the gap between traditional banking and cryptocurrency businesses.
Here’s what Binance CEO Changpeng Zhao had to say at the Web Summit conference in Lisbon:
“Various local licenses, traditional banking, payment-service providers, and even banks are all held by individuals. We are taking a look at those topics. We aim to serve as a link between the traditional financial sector and cryptocurrencies. Have to work.”
The increasing interconnectedness of conventional financial systems and cryptocurrency markets is reflected in CZ’s remarks.
Therefore, it is desirable that both the elements cooperate with each other instead of promoting competition.
For example, BlackRock and Goldman Sachs are two of the largest financial organizations that are actively participating in the cryptocurrency sector.
Despite the fact that the crypto winter is still going strong, BlackRock decided to partner with Coinbase in August 2022 to help its institutional clients gain exposure to digital assets at a fair price.
Binance To Explore Global Territories
According to Binance CEO Changpeng Zhao, the company is willing to consider both complete and partial acquisitions. In addition, he said
“What we discovered is that when banks partner with us, we bring in a lot of users to them, so the valuation of the bank goes up a lot. Why not invest in them too, so that we can take on some of the equity upsides? Can you capture?”
Zhao was also a key player in the recent Twitter deal as he contributed $500 million to Elon Musk to acquire Twitter. He also stated that he would like to join the Twitter board upon Elon Musk’s approval. Additionally, Binance is ready to offer blockchain-based solutions to address the Twitter bot problem.
