Numerous concerns were raised against the centralized exchanges of cryptocurrency following the FTX debacles. As a result, the crypto community is now focusing on cold wallets. In this situation, Binance (the top crypto exchange across the globe) is now permitting institutional investors to keep their crypto holdings as cold storage.
Binance to Let Institutional Investors Keep Their Collateral Separate from the Platform
The triple exchange has declared a unique service named ‘Binance Mirror.’ This is known as a solution for off-exchange settlement. The project permits the organizational investors to reach their investment and trading products existing in the ecosystem of the exchange with no need to deliver collateral to it straightly.
As per the formal press release by the crypto exchange, the organizations are enabled to lock a certain proportion of their assets in the cold storage service of Binance Custody. Apart from that, they can reflect it on the exchange account thereof with an absolute 1:1 balance ratio. The platform clarified that the assets of the consumers will remain secure in their isolated cold wallet until the Mirror position of the respective assets is open on the crypto exchange.
In line with this move, the investors can now keep on trading at a time when the sessions are volatile and the huge outflows of the exchange would not impact their assets at all. After the announcement, Binance Custody’s vice president “Athena Yu” remarked on the unique step taken by the crypto exchange. As per the VP, the organizations – which intend to avail the deep liquidity of Binance – prioritize the matter of security.
In Yu’s words, Binance Mirror offers both worlds’ finest. The VP mentioned that they have been operating most of the time during 2022 to assist the consumers in unlocking their cold-storage-based assets’ liquidity. She added that the platform is enthusiastic to offer the latest services that will enhance the functionality of Binance Mirror to a greater extent.
The abrupt collapse of FTX (the crypto exchange which was the rival of Binance) pushed the whole crypto industry into a chaotic scenario. With that disaster, the crypto winter prolonged further. The apprehensions regarding the centralized crypto exchanges escalated. Many crypto companies reached the solution that they should publish proof of reserves to eradicate the fears of the investors.
Binance to Increase Its Employees in 2023
Nonetheless, many crypto firms moved toward decreasing their staff to cope with the deepened bear market. Some other crypto platforms stopped appointing new employees. On the contrary, the top crypto exchange Binance has a strategy to enhance its staff members by nearly 30% during 2023.
Apart from that, the platform has also obtained approval to provide services as a financial organization. In this way, the company will provide trading and management services for digital assets under the Financial Supervisory Authority of Sweden.
Keeping this in view, Sweden turned out to be the 7th jurisdiction in the European Union to provide a green signal to Binance. Markus Thielen, the chief of strategy and research at Matrixport (a provider of crypto services), disclosed that the launch of such services is a good practice.
As per the executive, this will increase trust among organizations as they will be confident about the safety of their funds. Thielen added that the current move taken by Binance signifies that the crypto exchange is attempting to become a crypto exchange focused on institutions.
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