Binance to let institutions store crypto with cold custody
Amid the crisis of centralized cryptocurrency exchanges (CEX), crypto exchange Binance is moving to improve its institutional trading services with cold custody opportunities.
Binance announced on Jan. 16 the official launch of Binance Mirror, an off-exchange settlement solution that enables institutional investors to invest and trade using cold custody.
The newly launched Mirror service is based on Binance Custody, a regulated institutional digital asset custodian, by mirroring cold storage assets through a 1:1 collateral on Binance account.
Binance emphasized that the new solution enables more security, allowing traders to access the exchange ecosystem without having to post collateral directly on the platform, stating:
Launched in 2021, Binance Custody is a custodian platform with its own cold-storage solutions, covering secured assets against physical loss, damage, theft, or internal collusion. In March 2022, Binance Custody secured a cold wallet insurance in Lithuania to operate an institutional-grade digital asset custody solution. Mirror is a new product of Binance Custody, accounting for more than 60% of all assets secured on Binance Custody.
“We built Binance Mirror last year and have been testing it with our institutional users. User feedback has been positive and we are happy to announce and market it officially now,” a spokesperson for Binance told Cointelegraph.
It appears to be unclear whether Binance is planning to provide similar cold custody services to retail investors. Binance did not immediately respond to Cointelegraph’s request to comment.
Related: Bitcoin Core developer hack highlights self-custody risks: Community responds
The news comes shortly after Binance experienced a massive drop in liquidity, with
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