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A Binance representative confirmed in a January 30 email statement sent to CryptoSlate that the platform now allows institutional investors to secure their commercial guarantees through a third-party banking partner.
Binance's solution, described as a “triparty banking” arrangement, has been in development for two years and directly addresses the primary concern of counterparty risk, an important consideration for institutional investors. This model allows investors to effectively manage risk while maximizing capital efficiency by pledging collateral on traditional assets.
Although details on specific banking partners are not disclosed, Binance highlighted its active engagement with various banking entities and institutional investors expressing interest in the deal.
The platform introduced the pilot project of this solution last November, allowing the guarantees held with the banking partner to be in fiduciary equivalents, such as Treasury bills.
Prior to this development, Binance customers were limited to holding their assets on the exchange itself or through its custody provider, Ceffu. However, concerns have arisen following the US Securities and Exchange Commission's lawsuit against Binance, questioning the exchange's crypto wallet custody practices and its relationship with Ceffu.
Binance’s market share is recovering.
Binance's market share is steadily increasing to its previous highs after its clashes with several financial regulators from different jurisdictions impacted its operations last year.
In response to this significant turnaround, Binance CEO Richard Teng expressed his optimism with a succinct “Keep Building” message on social media platform X.
The post Binance Allows Customers to Hold Off-Exchange Trading Collateral as Market Share Recovers appeared first on CryptoSlate.
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