Popular crypto exchange, Binance has through its custody, officially launched an off-exchange settlement solution. The exchange’s custody announced the development in a Monday blog post. According to the regulated and compliant institutional digital asset custodian, the solution emanated to allow institutions access trading and investment products within the Binance ecosystem without having to post collateral directly on the exchange.
The digital asset custodian identified the solution as Binance Mirror. Through this solution, institutions are able to lock a specified amount of their asset balance available in their Qualified Wallet, Binance Custody’s cold storage solution. More so, it allows them to mirror it onto their Binance Exchange account with a 1:1 balance. According to the announcement, the assets of these institutions remain secure in their segregated cold wallet. The assets will continue to enjoy the security as as long as their Mirror position is open on the exchange.
Prior to its official launch, Binance custody said the adoption and use cases for the solution grew significantly. According to the digital asset custodian, assets in Mirror account for over 60% of all the assets secured on its network. In the last quarter of 2022, it reportedly recorded a 67% increase in assets mirrored from Binance Custody to the exchange.
As announced, the solution also allow institutions to leverage their mirrored asset on Binance to access various products. One of those products that can be accessed with the mirrored assets is institutional VIP loans. Notably, the collateral needed to apply for the loan seems segregated in the Binance Custody Qualified Wallet of clients.
Binance Custody to add more features to the Solution
Athena Yu, Vice President of Binance Custody reacted to the official launch of the solution. According to Yu, security remains a top priority for institutions who desire the deep liquidity offered by the exchange. The VP said the solution tends to bring the best of both worlds. Further, Yu reflected on how the custody invested a lot of resources in refining the operations of the solution to help its clients unlock the liquidity of their assets held in the cold storage. Additionally, the VP expressed the delight of the team to officially launch the product. According to Yu, the team looks towards introducing new features to elevate the functionality of the solution.
Amidst prevailing crisis ravaging centralized exchanges, Binance has been striving to enhance its institutional trading services, particularly with cold custody. Recall that the recent collapse of FTX has made investors begin to lose trust in centralized exchanges. This has thus made these exchanges to experience a huge drop in liquidity. Binance, tor instance, in 2022, saw billions of dollars in crypto leaving its network.
Read More: