Binance, the world’s largest cryptocurrency exchange, announced the launch of Binance Mirror, an off-exchange settlement solution for its institutional investors. Binance Mirror will enable institutional investors to invest and trade using cold custody.
On Monday, Binance announced the launch of an off-exchange settlement solution called “Binance Mirror” that allows its institutional investors to lock collateral by connecting their qualified cold wallet with Binance Custody, a regulated institutional digital asset custodian. Locked assets can then be mirrored on their Binance exchange account. Binance said that its new offering enables more security by allowing traders to access the exchange without having to post collateral directly on the platform:
Their assets remain secure in their segregated cold wallet for as long as their Mirror position remains open on the Binance Exchange, which can be settled at any time.
Binance Custody was launched in 2021 and is a custodian platform with its own cold-storage solutions that covers secured assets against physical loss, damage, theft, and internal collusion.
Binance added that assets held in cold storage will be kept safe for as long as the mirror position remains open on the Binance Exchange, which can be settled at any time. The company said that assets held on Binance Mirror “account for more than 60% of all assets secured on Binance Custody.” Athene Yu, vice president of Binance Custody explained that by using the mirror service, institutional investors have access to a variety of products on the Binance exchange as well as “institutional VIP Loans.” Yu explained that given recent events in the market, institutions are looking for first-rate security, but also “the deep liquidity that the Binance Exchange offers.”
Yu further said:
We spent much of last year refining its operations to help our clients unlock the liquidity of their assets held in our cold storage. Adding, “We’re very excited about where we are today and can’t wait to introduce our upcoming new features that will elevate Binance Mirror’s functionality even further.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.