Binance is working to improve its institutional trading services by offering cold custody options in response to the growing security challenges faced by centralized cryptocurrency exchanges (CEX).
Binance announced the official launch of Binance Mirror, an off-exchange settlement service that enables institutional investors to invest and trade via cold custody.
According to Binance, institutions can use Binance Mirror to lock a portion of their assets in their Qualified Wallet, which serves as Binance Custody’s cold storage solution, and mirror the balance onto their Binance Exchange account with a 1:1 ratio.
This approach provides increased security and allows users to access the exchange ecosystem without having to physically submit collateral to the platform. Binance stated that as long as their Mirror position is open on the Binance Exchange and can be settled at any time, their assets are safe in the segregated cold wallet.
Organizations have access to a variety of products, including institutional VIP loans, using their mirrored assets on the Binance Exchange.
Binance highlighted that this new use case was carried out successfully through Binance Mirror while the client’s collateral, which was needed to apply for the loan, remained segregated in their Binance Custody Qualified Wallet.
In 2022, Binance continued to grow consistently, obtaining 14 new licenses and increasing its staff to 7,500 diverse employees from over 100 nationalities.
The exchange has continually introduced new products and services to meet the demands of its users while continuously developing and adapting to the ever-evolving cryptocurrency industry.
Binance has also demonstrated a strong commitment to security by putting advanced technology and protocols in place to protect the assets of its users.
If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
