- Binance announced the official launch of Binance Mirror, its new off-exchange settlement solution for institutional investors who they will have the possibility to block specific digital assets, through a cold wallet.
It is no mystery to anyone that there is currently a crisis in the sector of centralized cryptocurrency exchanges (CEX), however, says a phrase that “when it gets darkest, it is because it is going to dawn” and it may be true, or at least it is for those who know how to play their cards in the long game of life.
A good example of this is the exchange of digital assets. Binancea company that today is updated to keep up with the demands of the market, which is why is enhancing its institutional trading services with cold custody opportunities.
Binance Mirror
Recently the crypto company announced the official launch of Binance Mirroryour new off-exchange settlement solution for institutional investors. Through this new service, now the firm’s institutional clients will have the possibility of blocking specific digital assets, through a cold wallet.
Subsequently, the assets can be seen reflected in the exchange accounts of Binance from the same institutions with a balance of 1:1.
This off-exchange settlement solution allows institutions to access trading and investment products within the Binance Exchange ecosystem without having to post collateral directly on the exchange..
Notably, Mirror is based on Binance Custody, a custodian of regulated institutional virtual currencies. This service involves the duplication of cold storage assets by means of 1:1 collateral held in a Binance account.
Safety, a priority
The company placed special emphasis on the fact that Its new solution enables more security, empowering merchants to access the ecosystem of the exchange without the need to post collateral directly on the platform.
“Your assets remain safe in your segregated cold wallet as long as your Mirror position remains open on Binance Exchange, which can be liquidated at any time.”indicated the firm.
The crypto exchange also detailed that assets held on Binance Mirror “represent more than 60% of all assets secured in Binance Custody, indicating growing institutional confidence in the custodian’s over-the-counter solution”.
The exchange said that Binance Mirror saw significant growth during the last quarter of 2022, thanks to a “67% increase in mirrored assets from Binance Custody to the Binance Exchange.” In this way, each time the mirror service is used, institutional investors can seamlessly access Binance’s range of products, as well as “institutional VIP loans”.
In this regard, the vice president of Binance Custody, Athena Yu, pointed out that companies and firms are looking for high-quality security, however, they are also looking for the liquidity offered by Binance.
“Security is a top priority for institutions that also want access to the significant liquidity it offers Binance Exchange. Binance Mirror combines the best of both worlds”, he indicated.
The launch of Binance Mirror is currently pending authorization in seven countries of the European Union. Likewise, Binance has not indicated anything specific about whether this tool will also be exported to smaller investors in the future.
What is Binance Custody?
Binance Custody is a custody platform launched on the market in 2021, and it has its own cold storage solutions, which allow it to cover assets protected against physical loss, damage, theft and internal collusion.
It should be noted that, In March of last year, Binance Custody managed to get hold of a cold wallet insurance in Lithuania, with the goal of operating an institutional-grade crypto asset custody solution.
You might be interested in: