Binance Custody, a regulated digital asset custodian for institutions, has officially launched Binance Mirror. It is a solution that allows institutions to access trading and investment products on the exchange without the need to post collateral directly on it.
In December 2021, the world’s largest exchange introduced a new way for institutions to securely participate in the digital asset economy through the launch of Binance Custody.
This dedicated platform operates separately from the exchange and boasts advanced account and wallet systems specifically designed to overcome the security and operational obstacles faced by institutions.
However, this time, the Vice President of the Custody platform stated that security and deep liquidity offered by the exchange are both highly valued by institutions. Binance Mirror aims to provide both these features, resulting in a perfect solution.
Institutional users can now access the exchange without risking the security of their assets due to Binance Mirror. By utilizing its Custody’s Qualified Wallet, a cold storage solution, institutions can lock a certain amount of their assets and mirror it onto their exchange account with a 1:1 balance.
This way, their assets stay protected in their segregated cold wallet as long as their Mirror position remains open and can be settled at any time.
Binance Mirror Adoption Surges 67% in Q4 2022
A breakthrough development in the world of institutional finance has emerged as Binance Mirror now enables institutions to access a variety of products, such as institutional VIP Loans, using their mirrored assets on the exchange.
This innovative new feature was successfully put into practice, allowing clients to apply for loans while keeping their collateral securely stored in their Custody Qualified Wallet.
According to the blog post, the fourth quarter of 2022 saw a significant rise in the adoption and use cases for Binance Mirror, its Custody’s off-exchange solution. By a 67% increase in assets mirrored from the custodian to the exchange.
However, it indicates that institutions are increasingly confident in its new service, as mirrored assets now make up over 60% of all assets currently held in Binance Custody.
Athena Yu further stated:
We spent much of last year refining its operations to help our clients unlock the liquidity of their assets held in our cold storage. We’re very excited about where we are today and can’t wait to introduce our upcoming new features that will elevate Binance Mirror’s functionality even further.
Related Reading | Here’s Why Bitcoin and Ethereum Proponents Are Locking Horns Once Again