Binance to Let Traders Keep Crypto Collateral Off Its Exchange
- Users can pledge assets in cold storage under Binance Custody
- A move to ease investor concern over asset safety on exchange
Photographer: Jason Alden/Bloomberg
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Binance, the operator of the world’s biggest crypto exchange, will allow institutional investors to keep the collateral for leveraged positions off the platform, a move to ease concerns caused by the collapse of one-time rival FTX.
The company said that such firms will have the option instead to post collateral with Binance Custody, which will hold the assets in so-called cold storage, or wallets that are unconnected to the internet. After the trades are settled, the assets would then become unlocked and accessible to the user again.