Binance CEO Backs Institutional Involvement

By Rishma Banerjee

The CEO of Binance, Changpeng “CZ” Zhao, recently in an interview with Street spoke about the exchange’s plan, dealings, prospects for the future. He spoke to in detail about a number issues about blockchain and cryptocurrencies to Jordan French, from The Street, a financial news publication founded by Mad Money’s Jim Cramer.

CZ had a lot of opinions when asked about the recent race amongst the MNCS and other such institutions to invest in the crypto market.

He tweeted,

“We look for teams who share our vision; who want to build the infrastructure for ten years down the road for this industry.”

When asked about this influx, for example, ICE’s Bakkt, TD-backed ErisX, and Fidelity Digital Asset Services, Zhao noted that “increase institutional participation is a very good thing.” He expalined by citing the example of Fidelity Investments, a Boston based financial giant,who manages close to 2 trillion USD in assets which is more than 10 times the total value of all cryptocurrencies. He thus said,

The fact that Fidelity is moving in to the space (by launching digital asset trading services last month) suggests the crypto market cap will grow a lot more.

Zhao compared the crypto market to that of a snowball rolling down a hill and said that more the market swells more entices investors will be in this industry, this boosting the prices. U

Almost likening the growth of a market to a snowball rolling down a snow-clad hill, Zhao then noted that as this market swells, more investors will be enticed to foray into this market and industry, further boosting prices. CZ then discussed stability and non-volatility and its relation to institutional involvement. He explained that as stability declines, adoption levels, both in merchant and investment capacities, is likely to improve, subsequently adding that it is “just a matter of time.”

In short, Zhao explained that the arrival of institutional players “is basically a very net positive.” he also noted that about more investments we’re coming up in France and Europe due to their country’s comparatively less strict regulation.

This, interestingly, is a tidbit of insight that many crypto enthusiasts would fail to notice, as crypto media takes a focus on U.S. players and products. Regardless, the fact that Binance recently established a crypto-to-fiat platform in Singapore indicates that this industry’s fundamentals are shifting under the radar, and hopefully for the better.

Zhao’s most recent comments come just weeks, if not days after he took to CNBC Africa’s Crypto Trader to tell host Ran NeuNer that “sooner or later” any number of catalysts will spark crypto’s next bull run.

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Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.

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