According to a statement by Binance, the crypto exchange firm has donated $2.5 million worth of its stablecoin Binance (BUSD) to the United Nations High Commissioner for Refugees (UNHCR), for relief efforts in war-torn Ukraine.
The $2.5 million BUSD donation made by Binance was received by Binance charity from its cryptocurrency exchange.
Head of Binance Charity, Helen Hai, commented saying:
"We are proud that we've been able to work with UNHCR to deliver its first BUSD crypto donation. UNHCR's tireless efforts and second-to-none experience in assisting refugees make them an obvious choice to support as part of our $10 million USD in crypto donations."
The BUSD stablecoin is developed by Binance in partnership with Paxos, a trading and custodial platform headquartered in New York.
In a nutshell, since the price of stablecoins is pegged to more stable assets like the US Dollar or gold, stablecoins act as a link between cryptocurrencies and fiat currencies.
Following the donation, Executive Director and CEO of USA for UNHCR, Anne-Marie Grey, said:
"Binance Charity's commitment to the families fleeing the war in Ukraine shows the innovative philanthropic power of crypto in action. This generous support will make a life-changing difference for families forced to flee, and more importantly, it shows families that a caring and committed global community is stepping forward to help during their darkest times."
Refugee crisis due to the war in Ukraine
The invasion of Ukraine by Russia has led to more than 10 million people fleeing their homes, with about four million seeking refuge in neighboring countries like Moldova, Romania, Poland, and Hungary. The rest though displaced remain in refugee shelters in Ukraine.
Binance recently made a commitment to donate $1o million to support those affected by the war in Ukraine and this is the most recent donation in relation to that commitment.
Binance charity has already contributed $4.5 million and the recent donation brings the total sum of donations to $7 million.
In the same statement, Binance stated:
"In addition to the $10 million commitment, Binance Charity launched a crowd-funding platform, which has raised approximately $900K USD from the crypto community. This money will also be allocated to humanitarian efforts."