Binance and institutions: A new crypto service to attract investors

Binance highlights institutions – The fall of the FTX empire and many revelations about Sam Bankman-Fried have created what is becoming customary to call a crisis of confidence. In the face of this turbulent atmosphere, Binance aims to reassure investors, and especially institutional investors. Purpose? So that the latter do not run away from centralized platforms in favor of decentralized protocols. Thus, the crypto platform offers a new service for institutions to keep their cryptos safe: BinanceMirror.

Binance offers a cold wallet for institutions

This new feature will be managed by Binance Custody, a crypto infrastructure solution for institutions. The Binance branch will hold its clients’ assets in so-called cold storage wallets (cold wallet).

Why so much excitement about this announcement? Understand that most investors who lend crypto or even leverage trades must hold their cryptocurrencies on the exchange they use. now,FTX collapse last November, or last spring that of centigradehave raised concerns about the ability of crypto exchanges to keep users’ assets safe.

“Through Binance Mirror, institutions lock a certain amount of their available asset balance in their eligible wallet, the Binance Custody cold storage solution, and mirror it in their Binance Exchange account with a balance of 1: 1. Their assets remain safe in their separate cold wallet (…)”.

Binance Press Release – Source: Binance Custody

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Binance: safety for investors

So, like usexplains Binance, this decision aims to reduce risks for institutional investors. In fact, the crypto platform also wants to encourage users to use their services. By offering them a custodial service, Binance would solve one of the problems that most drives investors away:uncertain. Athena Yuvice president of Binance Custodyexplains as follows:

“Security is a top priority for institutions, who also want the deep liquidity that Binance Exchange offers. Binance Mirror brings the best of both worlds (…) We have spent most of the last year refining its operations to help our customers unlock liquidity for their held assets. We are very excited about where we are today and look forward to showing off our upcoming new features that will elevate the functionality of Binance Mirror even more.”

Binance is not the first to confirm its interest in institutional investors. Last week, an investment arm of Samsung announced the launch of a Bitcoin ETF on the Hong Kong Stock Exchange. This interest, despite the crypto winter, gives us a glimmer of hope, while some still think, like Bill Gates that cryptocurrencies are based on the “big fool theory”.

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