Binance Pushes the Boundaries of Web3 in an Innovative Way
Binance has announced the launch of an off-exchange settlement service for institutional clients through its custody business.
The new service, Binance Mirror, is designed to address growing concerns regarding asset security on crypto exchanges.
Binance Custody is a custodian platform that protects assets from physical loss, damage, theft, and internal collusion.
After the collapse of the crypto exchange FTX, concerns over the
Legitimacy of centralized crypto exchange increased. However, Binance remains the only CEX expanding its institutional trading services.
In line with this, Binance on January 16 officially announced the launch of Binance Mirror Service. The new feature is an off-exchange settlement service that allows institutional investors to invest and trade via cold custody.
The Binance mirror service is designed to address growing concerns regarding asset security on crypto exchanges. As per the Binance official announcement,
“Binance Mirror allows institutions to lock a defined amount of their asset balance available in their Qualified Wallet, and mirror it with a 1:1 balance onto their Binance Exchange account.”
The leading crypto exchange noted that the new service will also allow traders to gain access to the exchange ecosystem without having to deposit collateral on the platform directly.
On the development, a Binance spokesperson noted, “the company built Binance Mirror last year and has been testing it with institutional users. User feedback has been great, and we are excited to officially unveil and market it immediately.”
However, it’s still unclear whether Binance intends to offer similar cold custody services to retail investors.
What is Binance Custody?
Binance Custody is a custodian platform with its own cold storage options. The platform was launched in 2021, and it protects assets from physical loss, damage, theft, and internal collusion.
In March 2022, Binance Custody secured cold-wallet insurance in Lithuania to run an institutional-grade digital asset custody solution. Furthermore, amid the expanding self-custody trend, Binance CEO CZ admitted that CEX may soon become outdated in the near future.
What are your thoughts on the Binance Mirror launch? Do you believe the new service will address growing asset security concerns? Please share your valuable thoughts in the comment section below.
