Binance Exchange launches Off-Exchange Settlement Solution: “Binance Mirror”
The FTX issue has increased the pressure on centralized crypto exchanges, and cold wallets are now the main emphasis. It is only natural for the world’s largest cryptocurrency exchange to allow institutional investors to retain their cryptocurrency in cold storage.
Binance Exchange Solution, the world’s biggest digital asset exchange by daily traded volume and global regulations, has announced the debut of Binance Mirror, an off-exchange settlement service for institutional investors. According to the release, digital assets in the Binance Mirror represent more than 60% of all assets safeguarded in Binance Custody. As a result, the company deemed it prudent to provide institutional investors with a safe option for trading digital assets.
The Binance exchange seeks new institutional clients
Binance makes a highly strategic move, launching the new Mirror service in order to capture everything, even institutional customers.
The security of a cold wallet will allow investors of a specific depth to invest with optimum security. Binance made a very wise decision by bringing likely institutional clients closer to it, which will make the exchange platform even more strong.
Binance Mirror
According to reports, Binance Mirror accounts will have a 1:1 balance on the cold storage and exchange. Tokenization of institutional assets will aid in reducing the theft of underlying assets, which are typically difficult to recover. Notably, customers of Binance Mirror will be able to redeem their positions at any moment on the Binance Crypto market.
“Security is a primary priority for institutions, who also benefit from the enormous liquidity provided by the Binance Exchange. Binance Mirror “combines the best of both worlds,” says Athena Yu, VP of Binance Custody. “We spent the majority of last year improving its operations so that our clients could access the liquidity of their assets housed in our cold storage.” We’re quite delighted with where we’re at right now and can’t wait to reveal our next new features that will improve Binance Mirror’s functionality even more.”
During the fourth quarter of 2022, the company reported a significant influx of institutional investors interested in digital assets. Furthermore, eligible institutional investors can gain access to VIP loans via the Binance Mirror.
Notably, Binance takes pride in regulatory permits in numerous jurisdictions, which increase the deep liquidity of its cryptocurrency. Furthermore, more traders with the proper leadership contribute to increased trading liquidity.
What is the functionality of Binance Mirror?
Institutional clients will now have more trading alternatives thanks to Binance’s new service, which is governed by Binance Custody. In essence, institutions can secure their assets by tying them to a cold wallet (this is where Binance Custody steps in).
As a result, the client’s assets will be visible on the Binance exchange right away. As a result, the customer’s assets will be kept safe in cold wallets for as long as the position on the exchange is open.
More than 60% of all secured assets in Binance Custody are kept in Binance Mirror.
The Mirror service on the Binance exchange provides institutional investors with numerous features and a diverse choice of products.
The vice president of the exchange appears happy to highlight the hard work Binance and its team have put in to get there. The idea is to have even more security. The search for these securities is also motivated by the “deep liquidity provided by the Binance exchange.”
Binance Mirror is currently awaiting approval in seven European Union countries. Binance Custody is a newer division of the exchange titan. In fact, Binance Custody was founded in 2021, yet it now provides one of the most sought-after services in the cryptocurrency market two years later.
No information has been provided by Binance regarding whether this functionality would eventually be made available to smaller investors as well. However, the exchange has stated that one of its aims is to strengthen the security of its platform in every manner possible, so who knows what the future holds.
Meanwhile, the Binance exchange’s power is growing increasingly stronger. Following rumors of its intentions to increase its workforce by 30%, it is releasing a novelty like “Mirror.” While the bear market continues to drive many companies to fail, lay off employees, or declare bankruptcy, Binance and its CEO Changpeng Zhao appear to be going forward and not looking back.
The exchange is vying for a full monopoly in the business; with over 60% of the asset market in its hands, who knows what the future holds?
Binance and the Future of the Cryptocurrency Market
Despite the heat of a year-long bear market, Binance has had the most monthly visitors of any exchange. According to Coingecko’s aggregate data, Binance received 66.6 million monthly visits, while Coinbase Global received 35.4 million and ByBit received 15.6 million. The exchange also has a high daily trading volume, making it appealing to institutional investors.
Following the demise of FTX and Alameda, the crypto exchange has substantially contributed to the industry’s stabilization in recent months. The development of appropriate trading tools, according to Binance CEO Changpeng Zhao (CZ), will aid in the mainstreaming of cryptocurrency.
The crypto industry, driven by the Bitcoin price, has considerably recovered from the FTX catastrophe. According to our most recent crypto price forecasts, the overall market capitalization has reclaimed $1 trillion, with Bitcoin (BTC) trading consistently above $21,000. The Solana ecosystem has seen the most recent gains, with the SOL price rising by more than 44 percent in the last seven days.
Final Thoughts
Binance, the largest cryptocurrency exchange by worldwide transaction volume, announced the debut of an off-exchange settlement option for institutional clients. With this service, institutions can lock a specific quantity of cryptocurrency in a qualified cold storage wallet, and assets will be replicated in a 1:1 ratio on their Binance exchange account.
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