Binance will allow investors to post collateral with Binance Custody, which will hold the assets off the internet. Using cold storage wallets, users can trade crypto during volatile sessions without massive outflows on an exchange. The feature could be a major blessing for crypto investors trading in the leveraged markets. Binance has hired an external custodian to help it keep users’ assets safe.
The move follows the collapse of rival FTX in November, which raised questions about its ability to keep customers’ funds safe. It is seen as a step towards becoming an institutional-focused exchange.
Binance Will Allow Institutional Investors to Keep Collateral off the Crypto Exchange
