Binance launches off-exchange custodial settlement platform
Binance announced on Jan. 16 the launch of a settlement platform that will allow institutional users to access exchange services while storing funds off-exchange.
The new service, called Binance Mirror, will be available to institutional users who lock their assets in Binance Custody’s cold storage service.
Those users will be able to “mirror” the balance in their custodial account to their exchange account. Then, they will be able to use the mirrored funds with Binance’s various trading and investment products, including VIP Loans.
Binance has offered its custodial service since 2021. Athena Yu, VP of Binance Custody, commented on how the platform has developed since then. She said:
We spent much of last year refining [Binance Custody’s] operations to help our clients unlock the liquidity of their assets held in our cold storage… [We] can’t wait to introduce our upcoming new features that will elevate Binance Mirror’s functionality even further.
Though Binance Mirror was not officially unveiled until today, it seems that Binance has been offering the service for some time. The company said that mirrored assets currently make up 60% of all assets on its custody platform. It also said that assets mirrored from custody to exchange accounts increased by 67% during the last quarter of 2022.
Binance did not reveal how much is stored in its custodial or mirror program. The company’s recent proof-of-reserves statement suggests that it has $69 billion of crypto holdings, though it is not clear that the statement accounts for all of its funds.
Though Binance Custody is not of use to retail users, it is of interest to institutional users who must store funds with qualified institutions according to certain security standards.