With the New Update, Independent Banks on Binance Will Hold Trader Assets

Crypto News – Larger traders can now keep their assets with independent banks on the cryptocurrency exchange Binance, according to a Financial Times story published on Tuesday.

With the New Update, Independent Banks on Binance Will Hold Trader Assets

Trader assets were previously required to be kept on the exchange or at Ceffu, a partner for custodial services. They can now use cryptocurrency-friendly establishments like FlowBank and Sygnum, two Swiss banks.

The action might be a result of consumers’ anxiety at Binance’s regulatory struggle in the United States, which resulted in a $4.3 billion punishment in November and heightened worries following the bankruptcy of competitor exchange FTX a year prior.

Exchange Considers Moving to Triparty Regulation for Greater Adoption

In reference to a partnership between its clients and a bank custodian, Binance stated in November that it has been investigating a banking triparty arrangement for more than a year. The exchange did not, however, reveal the bank names.

Our banking triparty solution paves the way for greater adoption amongst institutional investors, as this long standing model allows investors to manage risk while maximizing their capital efficiency by pledging collateral in the form of traditional assets,

a spokesperson for the exchange