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Binance Introduces Off-Exchange Settlement to Institutional Investors

by Solomon Oladipupo
  • The Binance Mirror service has been under testing since last year.
  • FTX collapse reduced investors' confidence in CEX storage.
Changpeng Zhao
Binance CEO Changpeng Zhao (Source: PC Tech Mag)
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Binance Custody, the institutional digital asset custody arm of the leading cryptocurrency exchange, Binance, officially launched Binance Mirror, its off-exchange crypto settlement solution, on Monday. The new service provides Binance’s institutional investors with access to the crypto exchange’s trading and investment products while their collaterals are kept in the company’s cold storage.

Binance Custody also noted that institutional investors can get access to the exchange’s VIP loans through the new service.

“Through Binance Mirror, institutions lock a specified amount of their asset balance available in their Qualified Wallet, Binance Custody’s cold storage solution, and mirror it onto their Binance Exchange account with a 1:1 balance. 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 explained in a blog post.

Watch the recent FMLS22 session that looks at the DeFi and CeFi industries.

Binance Mirror Tested among Institutional Investors

According to the digital asset custodian, the new service has been in the works since last year and has been tested among the exchange’s institutional investors. Binance Custody noted that adoption and use cases for the service jumped 67% during the last quarter of 2022 as more institutional investors mirrored their assets from the cold storage to the exchange.

“In total, assets in Binance Mirror account for more than 60% of all assets currently secured on Binance Custody, signaling growing institutional confidence in the custodian’s off-exchange solution,” the crypto custodian said.

Athena Yu, the Vice President of Binance Custody, noted that the new service provides security and access to Binance’s “deep liquidity” to institutional investors. The senior executive added that the exchange intends to introduce additional new features to the service.

The launch of Binance’s cold storage and off-exchange settlement service for institutional investors comes months after the collapse of the crypto exchange FTX reduced investors’ confidence in centralized exchanges (CEXs).

Binance Custody, the institutional digital asset custody arm of the leading cryptocurrency exchange, Binance, officially launched Binance Mirror, its off-exchange crypto settlement solution, on Monday. The new service provides Binance’s institutional investors with access to the crypto exchange’s trading and investment products while their collaterals are kept in the company’s cold storage.

Binance Custody also noted that institutional investors can get access to the exchange’s VIP loans through the new service.

“Through Binance Mirror, institutions lock a specified amount of their asset balance available in their Qualified Wallet, Binance Custody’s cold storage solution, and mirror it onto their Binance Exchange account with a 1:1 balance. 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 explained in a blog post.

Watch the recent FMLS22 session that looks at the DeFi and CeFi industries.

Binance Mirror Tested among Institutional Investors

According to the digital asset custodian, the new service has been in the works since last year and has been tested among the exchange’s institutional investors. Binance Custody noted that adoption and use cases for the service jumped 67% during the last quarter of 2022 as more institutional investors mirrored their assets from the cold storage to the exchange.

“In total, assets in Binance Mirror account for more than 60% of all assets currently secured on Binance Custody, signaling growing institutional confidence in the custodian’s off-exchange solution,” the crypto custodian said.

Athena Yu, the Vice President of Binance Custody, noted that the new service provides security and access to Binance’s “deep liquidity” to institutional investors. The senior executive added that the exchange intends to introduce additional new features to the service.

The launch of Binance’s cold storage and off-exchange settlement service for institutional investors comes months after the collapse of the crypto exchange FTX reduced investors’ confidence in centralized exchanges (CEXs).

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