According to a blog post published on Thursday, Binance, the biggest cryptocurrency exchange in the world, announced it will create a US$1 billion fund for its “Industry Recovery Initiative” to lessen the effects of the FTX exchange’s demise.
Following the failure of cryptocurrency exchange FTX, Binance CEO Changpeng Zhao first announced the establishment of an industry recovery fund on November 14. This was done to assist businesses that “are otherwise strong but in a liquidity crisis.”
One billion Binance USD (BUSD), a fiat-backed stablecoin issued by Binance and blockchain infrastructure provider Paxos, is shown in the initial commitment that Binance published.
According to the exchange, depending on demand, the commitment might rise to BUSD 2 billion.
According to Paxos, BUSD is fully backed by reserves of fiat money and U.S. Treasury bills and is authorized and governed by the New York State Department of Financial Services.
According to Binance, the fund has received US$ 50 million in assets from market participants Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group, with more anticipated to sign on.
In an interview with Bloomberg on Thursday, Zhao stated that in the event that FTX was unable to execute an agreed-upon acquisition of the company, Binance.US will also make a bid for the defunct cryptocurrency lender Voyager Digital.