Institutional adoption of bitcoin is increasing tenfold, and exchanges are playing a crucial part in garnering these institutions the digital assets they’re so desperate for. Changpeng Zhao – the CEO of Binance, arguably the largest and most popular crypto trading platform in the world – has stated that he’s seeing huge bursts of institutional interest in his company, and that large buys are becoming much more common.
Binance Is Seeing Its Clientele Grow
Binance came about in 2017, so it’s impressive that it’s garnered so much business in just under four years. On average, the daily trading volume of the exchange exceeds $28 billion, and with this sudden increase in institutional buying, it’s likely this daily average is bound to surge like it never has before.
In an interview, he comments that many of the platform’s customers are legitimate businesses and company enterprises, and that the amount of crypto being purchased has shot up. He also says that the number of customers the company services has grown to unprecedented sizes. He claims:
The total size of the user base is growing very rapidly, especially in the last year.
He also says that the institutional booms the crypto world has been seeing can probably be attributed to Michael Saylor, the CEO of software firm MicroStrategy. The enterprise began investing in bitcoin last August when one unit of the digital currency was trading for about $12,000. It purchased more than $400 million-worth of the cryptocurrency between then and October, and ultimately engaged in future buys and even sold some of its convertible debt to garner more money to make purchases.
Overall, the company has invested more than $4 billion into the world’s leading digital asset by market cap. This has sparked a huge trend, with many additional institutions – such as Square, MassMutual, Stone Ridge and even Tesla – buying hundreds of millions or even billions-worth of the cryptocurrency.
Saylor also hosted a summit in early February for institutions who were interested in getting their fingers on BTC. Saylor claimed that demand amongst companies for digital assets is huge, and that the event was designed to answer some of their most elusive questions and put them on the right track.
Either way, institutional investors have long been considered a staple of bitcoin’s mainstream journey. It was agreed on long ago that if institutions didn’t get involved in crypto, the space would never rise beyond speculative territory, and now that that’s occurred, the currency is being viewed as a store of wealth and a hedge tool – especially now that the asset has risen to the $50,000 level and fiat currencies such as USD are experiencing heavy inflation.
Treasury Buyers Have Stepped In
Zhao further mentions that treasury buyers are entering the Binance forum and states:
They buy over long periods, long meaning like weeks or months, and then they just buy. They don’t sell.
The post Binance CEO: We’re Seeing a Lot More Institutional Investors On Our Platform appeared first on Live Bitcoin News.