Biggest Crypto Trader Shows Institutional Investors He Can Be Safer Than FTX
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As reported by BloombergBinance has found a way to allay institutional investor concerns about their crypto assets that were raised after the collapse of ambitious Binance rival FTX in early November last year.
Now, Binance allows investors to keep collateral for their leveraged positions off the platform. Binance Custody will help here, which stores assets in cold wallets.
Cold wallets are not connected to the internet, Binance reminded investors, so their crypto used to back their leveraged trades will be safe there. Once trades are complete, the coins will be unlocked and the customer will have access to them again.
Binance Custody, which launched last year, is registered in Lithuania.
After FTX crashed and became insolvent, along with its founder Sam Bankman-Fried and its trading company Alameda Research (which dragged Binance into insolvency with it), horrified and shocked investors began frantically withdrawing crypto from Binance and other crypto exchanges because they were scared. to see their funds embezzled as well. Notably, they withdrew billions of crypto from Binance.
However, the head of the exchange, CZ, calmly commented that these were regular transactions. He added that Binance saw a lot more pullbacks when the LUNA token crashed.