Binance aims to bring traditional companies to the crypto space by diversifying its business interest

As per a recent report by the Financial Times, crypto exchange platform Binance is aiming to diversify its business interest and is planning to acquire companies outside the crypto scope.

The exchange aims to bring the firms in the traditional market to the crypto market in its attempt to intensify broad-scale crypto adoption and diversify its own holdings.

Already being the biggest crypto exchange in the world, Binance wants to identify and invest in one or two “ targets in every economic sector and try to bring them into crypto,” said CEO Changpeng Zhao during an interview.

CZ went on to add that encouraging traditional enterprises to embrace crypto will put pressure on late adopters and boost overall competition in the market.

These moves illustrate the cryptocurrency industry’s growing real-world power, which has seen Binance grow to an estimated valuation of $300 billion and Changpeng Zhao become the 11th richest man on the planet.

While crypto exchanges have already sprayed their brands on stadiums and stolen the show at the Super Bowl, Binance’s acquisition of such a large interest in a traditional media organization like Forbes establishes the company as a major player in acquisitions and investments.

Binance has already experimented with buying assets and firms that aren’t directly related to its core business, having purchased crypto analytics website CoinMarketCap in April 2020 and a majority interest in card-payment services company Swipe in late December 2021.

In terms of revenue diversification, acquiring traditional businesses outside of digital assets appears to be a good decision, as 90 percent of CZ’s revenue is now derived from trading fees on its exchange.

The ongoing scrutiny on Binance

The revelation regarding Binance’s plans beyond crypto comes as the exchange continues to witness scrutiny by regulators all around the world.

As TheCoinRise reported, the UK Financial Conduct Authority or FCA fired a warning three days ago about a strategic partnership between Binance’s in-house card payment services Bifinity and investment firm Eqonex, in which the companies received a $36 million convertible loan to expand their products, such as the currently FCA-registered Digivault.

We are aware of recent statements made by Eqonex Limited and the Binance Group confirming that an entity called Bifinity will advance a US$36 million convertible loan to EQONEX. https://t.co/EV7keSHRpa

— Financial Conduct Authority (@TheFCA) March 7, 2022