{"id":203910,"date":"2023-12-01T00:23:17","date_gmt":"2023-11-30T18:53:17","guid":{"rendered":"https:\/\/dripp.zone\/news\/binance-introduces-custody-solution-for-institutional-traders-crypto-news\/"},"modified":"2023-12-01T00:23:20","modified_gmt":"2023-11-30T18:53:20","slug":"binance-introduces-custody-solution-for-institutional-traders-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/binance-introduces-custody-solution-for-institutional-traders-crypto-news\/","title":{"rendered":"Binance Introduces Custody Solution for Institutional Traders – Crypto News"},"content":{"rendered":"

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Binance has launched a pilot program that enhances the safety and efficiency of institutional trading. This initiative, announced on November 30, allows institutions to trade cryptocurrencies without the necessity of depositing collateral directly on the exchange.<\/span><\/p>\n

A Safer Trading Environment<\/h2>\n

This program marks a notable shift towards a more <\/span>secure<\/span><\/a> trading environment. Institutions participating in the program can now store their trading collateral with a third-party bank. This setup mirrors practices in traditional financial markets, catering to the varied risk tolerances of different investors. By allowing the option of keeping collateral in cash or Treasury bonds, institutions gain the opportunity to earn yields while actively trading in the crypto market.<\/span><\/p>\n

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Binance\u2019s Forward-Thinking Approach<\/h2>\n

Catherine Chen, a Binance executive, highlighted the company\u2019s <\/span>commitment<\/span><\/a> to addressing the long-standing concerns of counterparty risk in institutional investing. \u201cOur team, comprising both crypto natives and traditional finance professionals, has dedicated over a year to develop this banking triparty agreement,\u201d Chen stated. She also emphasized ongoing discussions with various banking partners and institutional investors who have shown keen interest in the program.<\/span><\/p>\n

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Counterparty risk, a prevalent concern in finance, refers to the potential default on a contractual obligation by a party involved in a transaction. This risk is compounded in centralized exchanges as traders typically need to deposit their assets on the exchange. Binance\u2019s new pilot program significantly mitigates the risk, providing safety and reassurance for institutional investors.<\/span><\/p>\n

The move by Binance is not isolated in the industry. On November 28, Deribit, another prominent crypto exchange, partnered with Fireblocks, an MPC wallet provider, to <\/span>introduce<\/span><\/a> a cryptographic solution enabling traders to perform swaps without exchanging deposits.<\/span><\/p>\n

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Read Also:<\/b> Cardano Founder and XRP Community Are at Each Other\u2019s Throats Again<\/span><\/a><\/p>\n

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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