The FTX crisis has put even more focus on centralized crypto exchanges, and cold wallets have all the focus now. It is only natural that the world’s largest crypto exchange allows institutional players to keep their crypto in a cold storage solution.
Binance announced a new service, dubbed ‘Binance Mirror’, an off-exchange settlement solution that allows institutional investors to access trading and investment products within the exchange ecosystem without having to post collateral directly on it.
Binance’s new feature
According to the official Press release, institutions can lock a specified amount of their asset balance in Binance Custody’s cold storage facility and reflect it on their exchange account with a 1:1 balance. The platform highlighted that user assets remain safe in its segregated cold wallet “as long as their Mirror position remains open on the exchange, which can be liquidated at any time.”
The move will essentially allow investors to continue trading even during volatile sessions without being affected by massive exits on an exchange.
Following the announcement, Athena Yu, VP of Binance Custody, said:
“Security is a top priority for institutions, who also want the great liquidity that Binance Exchange offers. Binance Mirror brings the best of both worlds. We’ve spent much of the past year refining their operations to help our clients unlock liquidity from their assets held in our cold storage. We are very excited about where we are today and cannot wait to introduce our next new features that will further elevate the functionality of Binance Mirror.”
Binance Roadmap for 2023
The dramatic collapse of rival Binance crypto exchange FTX in November of last year marked turbulent times and extended the crypto winter. Concerns have intensified about the ability of centralized exchanges to hold user funds. Several crypto firms have resorted to publishing proof-of-booking reports to ease fears. However, many announced layoffs while others halted hiring.
Binance, on the other hand, plans to expand its workforce by up to 30% this year. The CZ-led platform also obtained registration to operate as a financial institution for managing and trading virtual currency from the Swedish Financial Supervisory Authority. With this, Sweden became the seventh EU jurisdiction to give Binance the green light.
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