According to a statement from Binance, the cryptocurrency exchange donated 2.5 million USD worth of its stablecoin Binance USD (BUSD) to the United Nations High Commissioner for Refugees (UNHCR) to support relief efforts in war-torn Ukraine.
The 2.5 million USD donation in BUSD was made by Binance Charity through the cryptocurrency exchange.
Helen Hai, head of Binance Charity, said:
“We are proud to have partnered with UNHCR to deliver its first BUSD crypto donation. UNHCR’s tireless efforts and unmatched experience in supporting refugees made them an obvious choice to receive part of our $10 million crypto donation commitment.”
The BUSD stablecoin is issued by Binance in partnership with Paxos, a trading and custody platform based in New York.
In short, because the price of stablecoins is pegged to more stable assets such as the US dollar or gold, stablecoins act as a bridge between cryptocurrencies and fiat currencies.
After the donation, Anne-Marie Grey, executive director and CEO of UNHCR USA, commented:
“Binance Charity’s commitment to families fleeing the war in Ukraine demonstrates the innovative philanthropic power of cryptocurrency in action. This generous support will make a life-changing difference for families forced to flee. More importantly, it shows those families that a caring and engaged global community is stepping forward to help them in their darkest hours.”
Refugee crisis caused by the war in Ukraine
Russia’s invasion of Ukraine has forced more than 10 million people to flee their homes, with around four million seeking refuge in neighboring countries such as Moldova, Romania, Poland, and Hungary. Many others remain displaced within Ukraine, living in temporary shelters.
Binance recently pledged $10 million to aid those affected by the war in Ukraine; this donation is the latest contribution tied to that pledge.
To date, Binance Charity has already contributed $4.5 million, and the latest BUSD donation brings the total donated to $7 million.
In the same statement, Binance added:
“In addition to the $10 million pledge, Binance Charity launched a crowdfunding platform that has raised about $900,000 from the crypto community. These funds will also be directed toward humanitarian efforts.”