https://ift.tt/UYEd5cz The largest crypto-asset exchange by global trade volume, Binance, announced that its custody business has launche...
The largest crypto-asset exchange by global trade volume, Binance, announced that its custody business has launched an off-exchange settlement solution for institutional clients. With this solution, institutions can lock a specified amount of crypto with a qualified cold storage wallet, and assets will be mirrored on their Binance exchange account with a 1:1 balance.
Binance Mirror Allows Institutional Investors Access to Liquidity via Assets Held in Cold Storage
On Monday, Binance announced the launch of an off-exchange settlement solution called “Binance Mirror.” Essentially, institutional investors can lock collateral by connecting their qualified cold wallet with Binance Custody. The assets can then be mirrored on their Binance exchange account.
Binance notes that assets in the cold storage will be kept safe as long as the mirror position remains open on the Binance exchange, which can be settled at any time. The crypto exchange also detailed that assets held in Binance Mirror “account for more than 60% of all assets secured on Binance Custody.” The exchange said Binance Mirror experienced significant growth during the final quarter of 2022.
By using the mirror service, institutional investors have access to the range of products on the Binance exchange, as well as “institutional VIP Loans.” Athena Yu, the vice president of Binance Custody, explained that institutions are looking for top-notch security but also “the deep liquidity that the Binance Exchange offers.”
“We spent much of last year refining its operations to help our clients unlock the liquidity of their assets held in our cold storage,” the Binance Custody VP said in a statement on Monday. “We’re very excited about where we are today and can’t wait to introduce our upcoming new features that will elevate Binance Mirror’s functionality even further.”
The launch of Binance Mirror follows the exchange gaining authorization in seven European Union countries. At the start of 2023, the company also recently joined an association of certified sanctions specialists. Binance’s custody subsidiary, Binance Custody, was launched in December 2021 and offers segregated accounts and wallet systems.
What are your thoughts on Binance’s new off-exchange settlement solution, Binance Mirror? Let us know what you think about this subject in the comments section below.
from Bitcoin News
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