Binance has its eyes on the institutional ones – The fall of the FTX empire and the many revelations about Sam Bankman-Fried they created what is becoming customary to call a crisis of confidence. Faced with this uneasy climate, Binance intends to reassure investors, and especially institutional investors. The target. the goal? That the latter do not flee from centralized platforms in favor of decentralized protocols. The crypto platform therefore offers a new service so that institutions keep their cryptocurrencies 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 subsidiary will keep its customers’ assets in so-called cold storage wallets (cold wallet).
Why so much enthusiasm around this announcement? Understand that most investors who borrow cryptocurrencies or even trade with leverage need to hold their cryptocurrencies on the exchange they use. Now theFTX crash last November, or last spring that of Celsiushave raised questions about the ability of cryptocurrency exchanges to protect user assets.
“Through Binance Mirror, institutions lock up a certain amount of their available balance in their Qualified Wallet, Binance Custody’s cold storage solution, and mirror it to their Binance Exchange account with a 1:1 balance. Their assets remain safe in their separate cold wallet (…).”
Binance press release – Source: Binance Custody
Binance: security for investors
So like usexplains Binance, this decision aims to reduce the risks for institutional investors. In fact, even the crypto platform wants the encourage users to use their services. By offering them a custody service, Binance would solve one of the problems that most discourages investors: theinsecure. Athena Yuvice president of Binance Custodyexplains as follows:
“Security is a top priority for institutions, who also want the deep liquidity Binance Exchange offers. Binance Mirror offers the best of both worlds (…) We have spent much of the last year refining its operations to help our clients unlock liquidity for their held assets. We are very excited about where we are today and look forward to showcasing our upcoming new features that will further elevate the functionality of Binance Mirror.”
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 cryptocurrency winter gives us a glimmer of hope while some still think, like that of Bill Gates cryptocurrencies are based on the “great fool theory”.
Winter is a great time to build and learn! Register on the Binance platform and take advantage of a free academy and a site entirely in French to take your first steps in complete safety. You will save 10% on trading fees by following this link (trading link).