Binance, a cryptocurrency exchange, announced on Thursday that it will invest $1 billion to form an industry recovery initiative (IRI) to invest in digital assets sector companies.
The decision comes at a time when the cryptocurrency industry is teetering due to the bankruptcy filing of FTX in the United States.
The collapse of one of the world's largest cryptocurrency exchanges has also raised concerns about the industry's capacity to continue to attract venture capital and private equity investments.
Binance stated that it plans to increase its commitment to $2 billion in the near future, contingent on demand.
“We anticipate this initiative will last about six months and will be flexible on the investment structure — token, fiat, equity, convertible instruments, debt, credit lines, etc,” the crypto exchange added in a statement.
Zhao stated last week at a conference in Abu Dhabi that there was strong interest from industry participants in a recovery fund his company aims to establish to assist cryptocurrency ventures facing a liquidity crunch in the wake of the demise of rival FTX.
He stated that such a fund would assist "prevent additional cascading detrimental consequences of FTX" without providing a precise amount.
Several crypto companies have been preparing for the aftermath of the FTX collapse, with many calculating their exposure to the troubled exchange in millions of dollars.
By fLEXI tEAM