Binance is getting closer to its institutional customers with the announcement of “Binance Mirror”, a cold storage solution that allows investors to use their secure cryptocurrencies at a ratio of 1 to 1 across the various tools of the exchange. We do not yet know if Binance Mirror will ever be rolled out to the general public.
Binance is getting closer to institutionals
Binanceone of the few centralized exchanges to suffer only relatively from the bear market, takes a step further towards its institutional clients with a new custody and investment solution.
Thereby, Binance Custodyan institutional-grade fund custody infrastructure whose funds are segregated from Binance, launches Binance Mirroran innovative solution that allows institutions to have access to the various investment and trading products offered by the exchange without having to deposit collateral.
According to the press release, institutions wishing to benefit from the services offered by Binance Custody will have the opportunity to create a dedicated wallet acting as a gateway between the exchange and the custody solution. Thus, affected Binance customers will be able to benefit from their assets at a ratio of 1 to 1 without them leaving Binance Custody’s vaults.
Until now, Binance Mirror was available for certain institutions in the form of a trial phase. According to the exchange, this solution has been widely acclaimed, since in the last quarter of 2022, the assets “mirrored” via this solution saw a 67% increase.
While this was only a small scale initiative, the assets deposited with Binance Mirror already represent more than 60% of all assets secured with Binance Custody.
Coincidence or not, this is a masterstroke for Binance, at a time when confidence in centralized exchanges (CEX) is at its lowest. Cold storage solutions remain, in fact, the preferred choice to secure your funds.
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Cold storage, now essential for trust?
Faced with the debacle of FTX, the latter having itself succeeded, among others, that of Celsius, investors are questioning more than ever the degree of trust to be given to centralized exchanges. As these sad events have shown us, when centralized players go bankrupt, it is sometimes impossible to determine whether investors will be able to recover their funds one day or another.
The rapid success of Binance Mirror is tangible proof that investors are looking for solutions that allow them to stay in control of their cryptocurrencies. While we don’t yet know if Binance, the world’s largest exchange, plans to extend this feature to retail investors, it’s sure to generate real interest.
Aware of growing investor interest in cold storage solutions, Binance’s venture capital arm had made a strategic investment in NGRAVEan innovative cold storage company, and also planned to invest in its Series A investment round.
Yi He, Co-Founder of Binance and Director of Binance Labshad highlighted the importance of cold storage in the crypto ecosystem:
“Security remains one of the biggest barriers to crypto adoption. Self-custody wallets are one of the most secure ways to store digital assets. »
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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