The largest crypto-asset exchange by global trading volume, Binance, has 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 the assets will be mirrored to their Binance exchange account with a 1:1 balance.
Binance Mirror Enables Institutional Investors to Access Liquidity Through Assets Held in Cold Storage
Monday, Binance announcement the launch of an off-exchange settlement solution called “Binance Mirror”. Essentially, institutional investors can lock in collateral by connecting their qualified cold purse with Binance Custody. The assets can then be mirrored on their Binance exchange account.
Binance notes that assets in 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 clarified that assets held in Binance Mirror “represent more than 60% of all assets secured on Binance Custody.” The exchange said Binance Mirror experienced significant growth in the last 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, Vice President of Binance Custody, explained that institutions are looking for top-notch security but also “the deep liquidity that Binance Exchange offers.”
“We have spent much of the last year refining its operations to help our clients unlock liquidity for their assets held in our cold storage,” Binance Custody’s vice president said in a statement on Monday. “We are very excited about where we are today and look forward to showcasing our new upcoming features that will elevate Binance Mirror’s functionality even further.”
Binance Mirror Launch Follows Winning Exchange permission in seven countries of the European Union. In early 2023, the company also recently joined an association of certified sanctions specialists. Binance’s custody subsidiary, Binance Custody, launched in December 2021 and offers separate accounts and wallet systems.
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