Binance sets new standards for institutional crypto trading
Binance sets new standards for institutional crypto trading
Binance, the world's largest cryptocurrency exchange, has announced the world's first tri-party cryptocurrency agreement with a third-party banking partner.
The agreement will allow institutional investors to store trading collateral off-exchange with a third-party banking partner.
Notably, Binance is currently the only cryptocurrency exchange to offer such a tri-party solution, effectively combining the power of the cryptocurrency market with traditional financial risk control.
At the same time, the program demonstrates a remarkable step towards a safer trading environment.
"We are excited to set the standard for institutional cryptocurrency trading and provide a safe and secure way for our existing VIP and institutional clients, as well as new institutional investors looking to take advantage of the highest market liquidity on the world's largest cryptocurrency exchange," Binance said in a statement.
The tripartite agreement addresses the issue of counterparty risk, which is a major concern for institutional investors. The agreement gives investors the ability to proportionally allocate their crypto assets based on their risk tolerance. Meanwhile, the collateral held by the banking partner can be in fiat or Treasury bills, which have the added benefit of being a high-yielding asset.
"Counterparty risk has long been a concern for institutional investors across the industry. Our team of crypto natives and traditional finance professionals have been studying the tri-party banking agreement for over a year to address their concerns. We have developed a solution that ensures our institutional clients can optimize their collateral and cryptocurrency investments, modeled after trading behavior in traditional markets. We are in close discussions with a number of banking partners and institutional investors who have also expressed strong interest in participating," said Catherine Chen, Head of VIP and Institutional Investments at Binance.
Binance's new pilot program significantly reduces risk by providing security and certainty to institutional investors.
Recently, Binance has increasingly demonstrated its commitment to providing its clients with the best trading conditions in the cryptocurrency market.
Read also: Brazil introduces tax on crypto income from foreign exchanges.
