Institutions Now Have the Ability to Invest and Trade Using Cold Custody Thanks to Binance's New Feature!
Binance Custody, a licensed institutional digital asset custodian, serves as the foundation for the new service that has been introduced.
Because of the FTX problem, centralized crypto currency exchanges are under considerably more scrutiny than before, and cold wallets are currently receiving the majority of attention.
It is only logical for the largest crypto currency exchange in the world to permit institutional players to store their crypto currency in a cold storage solution.
Binance has introduced a new service called "Binance Mirror." This new service is an off-exchange settlement solution that allows institutional investors to access trading and investment products inside an exchange ecosystem without having to deposit collateral on it physically.
The Latest Addition to Binance
As stated (1) in the official news release, institutions can lock a certain portion of their asset balance in the cold storage unit Binance Custody operates and then mirror that portion onto the exchange account with a 1:1 ratio.
The company emphasized that users' assets would remain safe within their individual cold wallets "for as long as their Mirror position remained open on the exchange, which could be settled at any time."
The adjustment will, in essence, make it possible for traders to continue to trade even during tumultuous sessions without worrying about being subjected to significant outflows from an exchange.
Athena Yu, Vice President of Binance Custody, made the following statement after the announcement:
"The deepest concern for institutions is safety, and they are interested in the extensive stability that the Binance Exchange provides. Binance Mirror combines the most beneficial aspects of both platforms.
We devoted a significant portion of the previous year to improving its operations in order to assist our customers in increasing the liquidity of their assets that were being stored in our cold storage.
We are quite pleased with where we are at the moment, and we can't wait to roll out the brand-new features that will bring Binance Mirror's usefulness to a whole new level.
Binance’s Plan for 2023
The abrupt closure of Binance's competitor, FTX, as a crypto currency exchange in November of the previous year ushered in a period of turbulence and a protracted crypto winter. The capacity of centralized exchanges to safely store customer cash is becoming an increasingly pressing concern.
Several crypto currency companies have resorted to producing proof-of-reserve reports to ease investors' concerns. However, several companies have declared they would cut jobs, while others have ceased hiring.
Binance, on the other hand, is planning to increase the size of its workforce by as much as 30 percent this year. The Swedish Financial Supervisory Authority has granted the platform managed by CZ permission to operate as a financial institution for the administration and trade of virtual currency after it successfully completed registration requirements. As a result of this development, Sweden became the eighth EU state to grant Binance regulatory approval.