Binance said that it would increase its commitment amount to $2 billion.
Binance, a cryptocurrency exchange, said on Thursday that it will devote $1 billion to creating an industry recovery initiative (IRI) to fund businesses in the digital asset market.
The action is being taken while FTX, which is looking for Chapter 11 bankruptcy protection in the United States, collapses and the cryptocurrency market is on edge.
Concerns about the industry’s ability to continue attracting investments from major venture capital and private equity firms have also been stoked by the collapse of one of the largest cryptocurrency exchanges in the world.
Depending on demand, Binance said it might soon increase its committed amount to $2 billion.
The cryptocurrency exchange continued, “We believe this effort will run roughly six months and will be flexible on the investment structure—tokens, fiat, equity, convertible instruments, debt, credit lines, etc.
Following the demise of rival FTX, Zhao claimed last week at a conference in Abu Dhabi that there was considerable interest from industry players in a recovery fund his company planned to launch to assist cryptocurrency projects facing a liquidity crunch.
Without providing the fund’s exact cost, he said it would “reduce the further cascading negative effects of FTX.”
Many cryptocurrency companies have been counting their exposure to the troubled exchange in the millions as they prepare for the fallout from the FTX collapse.