Jan 17, 2023 12:25
<p class="MsoNormal">Binance Custody, the institutional digital asset custody arm of leading
cryptocurrency exchange, Binance, officially launched Binance Mirror, its
off-exchange crypto settlement solution, on Monday. The new service provides Binance’s institutional investors with access to
the crypto exchange’s trading and investment products while their collaterals are kept in the company’s cold storage.</p><p class="MsoNormal">Binance Custody also noted that institutional investors can get
access to the exchange’s VIP loans through the new service.</p><p class="MsoNormal">“Through Binance Mirror, institutions lock a specified amount of their
asset balance available in their Qualified Wallet, Binance Custody’s <a href="https://www.financemagnates.com/terms/c/cold-storage/" target="_blank" rel="follow">cold
storage solution</a>, and mirror it onto their Binance Exchange account with a 1:1
balance. Their assets remain secure in their segregated cold wallet for as long
as their Mirror position remains open on the Binance Exchange, which can be
settled at any time,” Binance Custody explained in <a href="https://www.binanceinstitutional.com/support/announcements/article/204448334901952512" target="_blank" rel="follow">a blog post</a>.</p><p>Watch the recent FMLS22 session that looks at the DeFi and CeFi industries.</p><p class="MsoNormal">Binance Mirror Tested among Institutional Investors</p><p class="MsoNormal">According to the digital asset custodian noted, the new service has been
in the works since last year and has been tested among the exchange’s
institutional investors. Binance Custody further noted that adoption and use cases for the
service jumped by 67% during the last quarter of 2022 as more institutional
investors mirrored their assets from the cold storage to the exchange. </p><p class="MsoNormal">“In total, assets in Binance Mirror account for more than 60% of all
assets currently secured on Binance Custody, signaling growing institutional
confidence in the custodian’s off-exchange solution,” the crypto custodian
said.</p><p class="MsoNormal">Athena Yu, VP of <a href="https://www.financemagnates.com/tag/binance/" target="_blank" rel="follow">Binance Custody</a>, noted that the new
service provides security and access to Binance’s “deep liquidity” to
institutional investors. The senior executive added that the exchange intends to introduce other new features
to the service. </p><p class="MsoNormal">The launch of Binance’s cold storage and off-exchange settlement service
for institutional investors comes months after <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">the collapse of crypto exchange
FTX</a> reduced investors’ confidence in centralized exchanges (CEXs).</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
World Crypto Global
