According to a report by Bloomberg on Thursday, Changpeng Zhao, the chief executive officer of Binance, the largest cryptocurrency exchange in the world, suggested that traditional banks might be incorporated to the company’s business plan as it strives to bridge traditional banking and cryptocurrencies.
According to Bloomberg, Zhao stated in an interview at a web symposium in Lisbon that they are considering financial organizations with local licenses, including traditional banks and payment service providers, but he did not identify which banks would be under consideration.
In countries like the UAE, Singapore, and Hong Kong, which recently declared its intention to reestablish itself as a leading cryptocurrency hub, officials are creating licensing frameworks to control cryptocurrencies.
Zhao stated that when Binance partners with a bank, the bank’s valuation typically rises significantly. Through this investment, Zhao hopes to benefit from the higher valuation. Zhao noted that Binance’s involvement with a bank may take the form of a majority acquisition or a minority investment.
Binance revealed a $500 million investment in October to support Elon Musk’s purchase of Twitter. Binance contributed $200 million to Forbes in June.
The Philippines, Turkey, and South Korea are the most recent countries that Binance has targeted in its ongoing worldwide development.