Binance allows customers to keep trading collateral off-exchange as market share recovers
A binance representative confirmed this in an email notification sent to him on January 30. CryptoSlate The platform now allows institutional investors to secure their trading collateral through a third-party banking partner.
Binance’s solution, described as a “triple banking” arrangement, has been in development for the past two years and directly addresses the key concern of counterparty risk, an important consideration for institutional investors. This model allows investors to effectively manage risk while optimizing capital efficiency by collateralizing traditional assets.
While details about specific banking partners were not disclosed, Binance emphasizes active engagement with various banking institutions and institutional investors who have expressed interest in the deal.
The platform implemented a pilot plan for this solution last November, allowing collateral held with its banking partner to be in fiat equivalents such as Treasury Bills.
Before this development, Binance customers were limited to holding their assets on the exchange or through custody service provider Ceffu. However, concerns arose after the US Securities and Exchange Commission filed a lawsuit against Binance, questioning the exchange’s crypto wallet custody practices and its relationship with Ceffu.
Binance’s market share is recovering.
Binance’s market share has been steadily reaching previous levels after issues with various financial regulators in different regions affected its operations last year.
Last year, the platform strategically pulled out of Canada, the United Kingdom and several European countries, including Austria, Cyprus and the Netherlands, due to non-compliance issues.
It also faced a major $4.3 billion settlement with US authorities, which led to its market share falling to 44.5% by the end of the same year.
However, the latest findings from Kaiko Research indicate that Binance is making a remarkable comeback this year.
Binance Market Share (Source: Kaiko)
Data It reveals that Binance’s trading volume rose from a multi-year low to 49.44%, while the other 23 centralized exchanges collectively accounted for 50.56% of trading activity.
In response to this significant turnaround, Binance CEO Richard Teng expressed optimism in a succinct “Keep Building” post on social media platform X.
Binance post allows customers to store trading collateral off-exchange as market share rebound appears first on CryptoSlate
#Binance #customers #trading #collateral #offexchange #market #share #recovers
A binance representative confirmed this in an email notification sent to him on January 30. CryptoSlate The platform now allows institutional investors to secure their trading collateral through a third-party banking partner.
Binance’s solution, described as a “triple banking” arrangement, has been in development for the past two years and directly addresses the key concern of counterparty risk, an important consideration for institutional investors. This model allows investors to effectively manage risk while optimizing capital efficiency by collateralizing traditional assets.
While details about specific banking partners were not disclosed, Binance emphasizes active engagement with various banking institutions and institutional investors who have expressed interest in the deal.
The platform implemented a pilot plan for this solution last November, allowing collateral held with its banking partner to be in fiat equivalents such as Treasury Bills.
Before this development, Binance customers were limited to holding their assets on the exchange or through custody service provider Ceffu. However, concerns arose after the US Securities and Exchange Commission filed a lawsuit against Binance, questioning the exchange’s crypto wallet custody practices and its relationship with Ceffu.
Binance’s market share is recovering.
Binance’s market share has been steadily reaching previous levels after issues with various financial regulators in different regions affected its operations last year.
Last year, the platform strategically pulled out of Canada, the United Kingdom and several European countries, including Austria, Cyprus and the Netherlands, due to non-compliance issues.
It also faced a major $4.3 billion settlement with US authorities, which led to its market share falling to 44.5% by the end of the same year.
However, the latest findings from Kaiko Research indicate that Binance is making a remarkable comeback this year.
Binance Market Share (Source: Kaiko)
Data It reveals that Binance’s trading volume rose from a multi-year low to 49.44%, while the other 23 centralized exchanges collectively accounted for 50.56% of trading activity.
In response to this significant turnaround, Binance CEO Richard Teng expressed optimism in a succinct “Keep Building” post on social media platform X.
Binance post allows customers to store trading collateral off-exchange as market share rebound appears first on CryptoSlate
#Binance #customers #trading #collateral #offexchange #market #share #recovers
