Binance CEO CZ ‘Banks are a risk to fiat-backed stable coins’ in reaction to SVB, USDC Depegging

Binance CEO CZ ‘Banks are a risk to fiat-backed stable coins’ in reaction to SVB, USDC Depegging

Mar. 12, 2023

By Dorian Batycka

Binance CEO hints at possible bank acquisitions amid crypto-friendly banks facing severe distress and failures.

CZ, the CEO of Binance, has suggested purchasing the ailing Silicon Valley Bank, which entered into a Federal receivership on March 10 after it had been exposed due to risky lending practices.

The regional bank managed the deposits of several thousand customers including numerous start-ups crucial to the technology sector in California.

As contagion continues to spread from SVB and ongoing distress from crypto-friendly lenders like Silvergate, many crypto firms and VCs are preparing for worst-case scenario spillovers, including several leading exchanges — some of whom have floated the idea of swallowing up banks in the past.

Exchanges swallowing banks

Two days ago, CZ shared a news article from 2022 to his 8.2 million Twitter followers, which included a link to a Yahoo! Finance article stating Binance’s previous intentions to buy a bank.

Binance has been known to make strategic investments in the past; the crypto exchange has also backed Elon Musk’s acquisition of Twitter.