The cryptocurrency market enjoys a smooth recovery with almost all crypto assets trading in the green as Binance announces plans to convert $1 billion into crypto assets.
The sum will be converted to BTC, BNB and Ethereum, Binance CEO Changpeng Zhao stated in a Twitter post.
This announcement is coming after the US Financial Market witnessed a troubled week. Investors King earlier reported the collapse of Silicon Valley Bank, one of the most patronized banks by wealthy individuals and big corporations.
According to the post, the fund is the last part of the Industry Recovery Initiative Fund set up by the world’s largest cryptocurrency exchange specifically to help the crypto market when facing a liquidity squeeze.
“Given the changes in stablecoins and banks, Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including BTC, BNB, and ETH. Some fund movement will occur on-chain. Transparency,” the tweet read.
In November 2022, Binance announced a $2 billion industry recovery fund that will be used to buy distressed crypto assets and support crypto projects in crisis.
Binance CEO, Changpeng Zhao (CZ), noted that the idea of creating such a fund comes in the wake of the disastrous collapse of the FTX crypto exchange, which has left several crypto firms reeling.
Following the collapse of FTX, the cryptocurrency industry has been enmeshed in a series of troubles including the collapse of Silvergate Bank and the fallout of Silicon Valley Bank. Both banks have significant ties to cryptocurrency firms.
Meanwhile, on the heels of the announcement of the recovery fund, the cryptocurrency market took to the sky, adding to the gains it had already charted hours before the announcement.
A check on the Binance platform shows that Bitcoin, the flagship cryptocurrency has regained the $22,000 support level and is trading comfortably above it.
As of the time of writing this report, Bitcoin is up by 10.04%, Ethereum by 9.50% and BNB is up 10.41% in the past 24 hours.