Binance Suddenly Converts $1 Billion From Industry Recovery Initiative to Bitcoin, Ether, BNB – Here's Why

cryptonews.com:

Binance has confirmed plans to convert $1 billion worth of Binance USD (BUSD) from its Industry Recovery Initiative to native crypto assets, including Bitcoin, Ethereum, and BNB.

In a Monday tweet, Binance CEO Changpeng Zhao said the world's largest cryptocurrency exchange plans to convert the remaining $1 billion of its Industry Recovery Initiative funds to BTC, BNB, and ETH amid the ongoing saga around banks and stablecoins. He said:

"Given the changes in stable coins 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 movements will occur on-chain. Transparency."

The crypto boss confirmed that the transaction has been successful in a subsequent tweet. Blockchain data shows the transaction took 5 seconds and cost merely $1.29. "Imagine moving $980 million through a bank before banking hours on a Monday," CZ added. 

The move has ostensibly contributed to buying pressure, pushing top cryptocurrencies higher. According to data by CoinGecko, BTC, ETH, and BNB have all gained around 8% over the past 24 hours.

Back in November, Binance announced that it is setting up an industry recovery fund to help rebuild the industry. At the time, Tron founder Justin Sun said that Tron, Huobi Global, and Poloniex supported the initiative.

The move also comes in the wake of Paxos, BUSD's owner and issuer, being hit by a lawsuit from the United States Securities and Exchange Commission (SEC), with the agency claiming last month that the firm violated investor protection laws. Paxos announced it would halt BUSD minting and "end its relationship with Binance."

The $1 billion conversion of BUSD to major cryptocurrencies comes amid a