The largest crypto asset exchange by global trading volume, Binance, announced that its custody business has launched an off-exchange settlement solution for institutional clients. With this solution, institutions can lock up a specified amount of cryptocurrency with a qualifying cold storage wallet, and the assets will be reflected in their Binance exchange account with a 1:1 balance.
Binance Mirror allows institutional investors to access liquidity through assets held in cold storage
On Monday, Binance Announced the launch of an off-exchange settlement solution called “Binance Mirror”. Essentially, institutional investors can secure collateral by connecting their qualified cold wallet Custody of Binance. The assets can then be reflected on your Binance exchange account.
Binance notes that assets in cold storage will remain safe as long as the mirror position remains open on the Binance exchange, which can be liquidated at any time. The crypto exchange also detailed that assets held on Binance Mirror “account for more than 60% of all assets secured on Binance Custody.” The exchange said that Binance Mirror saw significant growth during 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-tier security, but also “the great liquidity that Binance Exchange offers.”
“We spent much of the past year refining its operations to help our clients unlock liquidity from their assets held in our cold storage,” Binance Custody’s vice president said in a statement Monday. “We are very excited about where we are today and can’t wait to introduce our next new features that will further elevate the functionality of Binance Mirror.”
The launch of Binance Mirror follows the exchange gaining authorization 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 segregated account and wallet systems.
What do you think about Binance’s new over-the-counter settlement solution, Binance Mirror? Let us know what you think about this topic in the comments section below.
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