Binance will Enable Institutions Store Crypto Assets in Cold Storage
- Crypto exchange Binance has debuted a new service that will allow institutions to store their crypto in cold storage.
- The assets will remain secure in their segregated cold wallet for as long as their Mirror position remains open on the exchange.
- The mirrored assets on the exchange are also eligible for and products like institutional VIP Loans.
- CEO Changpeng Zhao recenty stated that the exchange plans to increase workforce by 15-30% in 2023.
The crypto industry has witnessed a severe decline in institutional investment since the collapse of the former multi-billion dollar crypto exchange FTX. As a result, the world’s largest crypto exchange by trading volume, Binance, plans to re-instill the faith of institutional investors in the crypto space and has debuted a new service that will allow institutions to store their crypto in cold storage.
According to the official announcement, the new service from the leading exchange has been titled “Binance Mirror” and involves mirroring cold-storage assets through 1:1 collateral held on an account on the exchange. The exchange describes its new service as an “off-exchange settlement solution enabling institutions to access trading and investment products within the Binance Exchange ecosystem without having to post collateral directly on the exchange.”
The exchange also confirmed that the assets belonging to the institutional customers of the exchange will “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.”
It seems that the leading crypto exchange has been investing heavily in security features to boost the trading volume on the platform. As per Athena Yu, VP of Binance Custody, a separate, dedicated custody platform, “security is a top priority for institutions, who also desire the deep liquidity that the Binance Exchange offers. Binance Mirror brings the best of both worlds.”
“We spent much of last year refining its operations to help our clients unlock the liquidity of their assets held in our cold storage. 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,” Yu added.
The mirrored assets on the exchange are also eligible for a variety of features and products provided by the exchange, including the institutional VIP Loans. This new use case offered by Binance was executed via Mirror as the client’s collateral which is a must for loan application, was present in the Binance Custody Qualified Wallet.
It is crucial to note here that Binance has been expanding quite aggressively during the prevailing crypto winter. While the exchange’s CEO, Changpeng Zhao, also known as CZ, has been blamed for the collapse of FTX, the platform continues to fight the FUD and rumors of investigations presented by media outlet Reuters.
Zhao recently confirmed that his exchange will increase its workforce by 15-30% in 2023 while its competitors continue to lay off employees, citing market conditions and a worsening global macroeconomic situation. Moreover, the leading exchange increased its headcount in 2022 from 2,000 to over 8,000 as the year ended, as reported by BitcoinWisdom.