The recent FTX crisis has put a spotlight on the security of centralized crypto exchanges, with many investors turning to cold storage solutions to protect their assets.
In response to this trend, Binance, the world’s largest crypto exchange, has announced a new service called “Binance Mirror.”
Binance Mirror is an off-exchange settlement solution that allows institutional investors to access trading and investment products within the Binance ecosystem without having to post collateral directly on the exchange.
With this new feature, institutions can lock a specific amount of their assets in Binance Custody’s cold storage facility and mirror it onto their exchange account with a 1:1 balance.
This means that user assets remain secure in the cold storage facility for as long as the Mirror position remains open on the exchange, and can be settled at any time.
The introduction of Binance Mirror will allow investors to continue trading during volatile sessions without experiencing massive outflows on the exchange.
Athena Yu, VP of Binance Custody, said, “Security is a top priority for institutions, who also desire the deep liquidity that the Binance Exchange offers. Binance Mirror brings the best of both worlds.”
The FTX crisis has raised concerns about the ability of centralized exchanges to maintain user funds, leading to a loss of confidence among investors.
However, Binance is taking a different approach, with plans to expand its headcount by up to 30% this year.
The company has also been granted registration to operate as a financial institution for management and trading in virtual currency by the Swedish Financial Supervisory Authority, making Sweden the seventh EU jurisdiction to greenlight Binance.
In conclusion, Binance’s new feature, Binance Mirror, is a great solution for institutional investors looking for a secure and liquid trading environment.
The company is taking security and regulatory compliance seriously, and this is a positive sign for the future of the crypto industry.
