Binance Monday spear an off-exchange settlement solution that will allow institutional investors to keep their collateral used for leveraged positions off of its platform, in a bid to allay growing concerns about the safety of cryptocurrency assets Trades.
Using Binance Mirror, institutions can post collateral through Binance Custody’s cold storage wallet solution. The assets will be accessible to the user once the transactions have settled.
Most crypto investors keep their collateral in exchange for the trade, which could be at risk during market volatility resulting in large outflows on a platform. Cold storage wallets eliminate this risk.
“This is an exercise in building confidence for institutions that their funds will remain safe,” said Markus Thielen, head of research at crypto services firm Matrixport. CoinDesk.
The company said that adoption and use cases of Binance Mirror increased in the last quarter of 2022. Binance Mirror assets represent more than 60% of the total assets secured on Binance Custody.
Previously, Binance’s crypto trading volume dominated in 2022, ending the year with 66.7% market share.