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Binance Eyes Institutional Market With Mirror Solution

With questions around centralized cryptocurrency exchanges, Binance is improving its institutional trading services with cold custody opportunities.

Photo by Art Rachen / Unsplash

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Crypto exchange Binance hopes to court more institutional investors to its platform with the launch of Binance Mirror, its off-exchange settlement solution announced today.

The solution that enables institutions to access transactions and investment products in the Binance Exchange ecosystem without having to provide collateral directly on the exchange. This is done by mirroring cold storage assets through 1:1 collateral held on a Binance account.

Institutions are looking for top-notch security but also “the deep liquidity that the Binance Exchange offers,” Athena Yu, vice president of Binance Custody, said in the announcement, noting that adoption and use cases for Binance Mirror grew significantly in the last quarter of 2022, with a 67% increase in assets mirrored from Binance Custody to the Binance Exchange.

According to Binance, assets in Binance Mirror account for more than 60% of all assets currently secured on Binance Custody, signaling growing institutional confidence in the custodian’s off-exchange solution.

Binance Custody was launched in December 2021 as a dedicated custody platform separate from Binance Exchange, with segregated account and wallet systems to better cater to institutions participating in the digital asset economy.

Related: Institutional Clients to Benefit from Bybit, Copper Partnership