Binance wants to diversify its business interests by acquiring companies outside the scope of cryptocurrency, according to a report from the Financial Times.
“We want to identify and invest in one or two targets in each economic sector and try to bring them into crypto,” said Binance CEO Changpeng Zhao, affectionately known to his 5.3 million Twitter followers as “CZ†
Already holding the title of the world’s largest crypto exchange, Binance is striving to bring in companies from traditional markets in an effort to further increase cryptocurrency adoption and diversify its own bushiness.
In the interview, Zhao went on to say that urging traditional firms to embrace crypto will put pressure on slow-movers and increase overall market competition.
This announcement comes not long after Binance’s landmark $200 million investment in publisher Forbes in early February, making Binance one of the media company’s two largest owners.
“This is the first step towards a marketplace with great potential when it comes to adopting Web 3.0-based tools”https://t.co/mDIRMHC4dT
— Binance (@binance) February 10, 2022
These moves continue to showcase the burgeoning real-world strength of the cryptocurrency industry at large, growing Binance to an estimated valuation of approximately $300 billion and making Changpeng Zhao the 11th richest man in the world.
While crypto exchanges have previously plastered their logos on stadiums and stole the show at the Super Bowl, acquiring such a significant stake in an old media company like Forbes positions Binance as a serious player in acquisitions and investments.
Binance has previously dabbled in buying assets and companies outside of its immediate core business, having previously acquired cryptodata website CoinMarketCap in April 2020, as well as purchasing a majority stake in the card payment services giant. wipe end of December 2021.
In terms of revenue diversification, it seems like a wise move to scoop up traditional businesses outside of digital assets, 90% of which, according to CZ, currently comes from trading fees on the exchange.
Coin-Crypto contacted Binance for further comment, but it had not responded at the time of publication.
The news of Binance’s ambitions beyond cryptocurrency comes as the exchange comes under increasing scrutiny from regulators around the world.
Three days ago, the UK’s Financial Conduct Authority kicked off a strategic partnership between Binance’s internal card payment services Bifinity and investment firm Eqonex, granting a $36 million convertible loan to expand the companies’ products, including the currently FCA registered Digivault†
Related: Binance Back In Malaysia Over Strategic Interest In Regulated Digital Exchange
As a result of the transaction, the FCA said“Individuals and entities that are part of the Binance Group may have become the ultimate owners of Digivault for money laundering regulation purposes,” hinting at potential regulatory issues for Digivault.
We are aware of recent statements from Eqonex Limited and the Binance Group confirming that an entity called Bifinity will provide a US$36 million convertible loan to EQONEX. https://t.co/EV7keSHRpa
— Financial Conduct Authority (@TheFCA) March 7, 2022
Binance is also reportedly in talks to get a license to operate in Dubai, Bloomberg reported. This comes as the United Arab Emirates continues its efforts to become an “oasis” for digital assets in the Middle East.