Make at least 50.000$ monthly trading crypto Follow professional Trading signals for FREE. I'm going in!

Binance to allow institutions to store crypto with cold custody

3 min reading

Start making MONEY trading crypto! Follow professional Trading signals for FREE >>> JOIN

Binance Custody, a custodian platform with its own cold storage solutions, was introduced in 2021 and protects secured assets.

Powered by Froala Editor

The Mirror service, which is based on Binance Custody, includes mirroring cold-storage assets via 1:1 collateral stored on a Binance account.

Binance is looking to expand its institutional trading services with cold-custody options amid the centralized cryptocurrency exchange (CEX) crisis.

Binance officially launched Binance Mirror on January 16, an off-exchange settlement solution that allows institutional investors to invest and trade using cold custody.

The recently launched Mirror service mirrors cold-storage assets using 1:1 collateral held on a Binance account and is based on Binance Custody, a regulated institutional digital asset custodian.

Binance stated that the new approach provides improved security by allowing traders to access the exchange ecosystem without directly posting collateral on the platform, stating:

"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, a custodian platform with its own cold storage solutions, was introduced in 2021 and protects secured assets against physical loss, damage, theft, and internal collusion. Binance Custody acquired cold wallet insurance in Lithuania in March 2022 to manage an institutional-grade digital asset custody solution. Over 60% of all the assets secured on Binance Custody are represented by Mirror.

It is yet unknown if Binance intends to offer similar cold custody services to retail investors.

The news arrives soon after Binance saw a sharp decline in liquidity, with several billions of dollars worth of crypto departing the platform in late 2022. Investors are turning to self-custody instead of keeping their assets on centralized platforms, which is mainly responsible for the drop in liquidity caused by the crisis among CEXs sparked by the failure of FTX.

Changpeng Zhao, the CEO of Binance, acknowledged that the trend toward increasing self-custody might eventually make centralized exchanges obsolete. The Belgian hardware wallet firm Ngrave secured funding from Binance's venture capital arm in November.

ALSO READ- SHIB Token gains traction ahead of Shibarium Beta Launch

Currency Exchange rate Buy cryptocurrency

TradingSignals News
Start making MONEY trading crypto! Follow professional Trading signals for FREE >>> JOIN

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the ( Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is c/o Fintech Labs Global Solutions, Unit 303, Ile Du Port, Mahe, Seychelles

The full document to read the TradingSignals privacy policy is available in this document.

Advanced settings can be changed in your browser.