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Improving security for institutional investors
Binance Custody, the custody division of major crypto asset (virtual currency) exchange Binance, has officially launched its new solution, Binance Mirror, on the 16th.
Binance Custody provides custody services for institutional investors. Binance Mirror allows institutional investors to keep their assets in a cold wallet and use them as collateral for a wide range of Binance products, including loans.
Institutional investors can manage their assets with enhanced security through Binance Mirror.
What is a cold wallet
A wallet that is completely disconnected from the internet. There are paper wallets and hardware wallets.
Because it is separated from the Internet, it is strong against hacking, but it has the disadvantage of being less convenient for users who frequently use virtual currencies that are exchanged electronically.
Cryptocurrency Glossary
Binance Mirror utilizes Binance Custody’s cold storage solution, Qualified Wallet. Institutional investors lock the assets in the Qualified Wallet and use Binance Mirror to reflect (=mirror) to the Binance exchange at a 1:1 ratio and use it as collateral.
Binance Mirror has already started to be used in some areas before the official launch, and demand has increased significantly in the 4Q (October to December) of 2022. During this period, the assets transferred from Binance Custody to Binance increased by 67%.
Binance Mirror’s assets account for over 60% of all assets held in Binance Custody. In its announcement, Binance Custody claimed that the increased demand indicates growing institutional investor confidence in off-exchange solutions.
Binance Custody Executive Athena Yu commented:
Security is also a top priority for institutional investors looking to access liquidity on Binance. We have spent most of the last year improving our operations to unlock liquidity for assets in cold storage.
We look forward to adding new features to improve the quality of Binance Mirror in the future.
Relation: What is Binance, the world’s largest virtual currency exchange?
What is Binance Custody
Binance Custody will launch operations in December 2021 to provide regulated custody services. We provide solutions certified by international standards for information security (ISO27001) and privacy protection standards (ISO27701).
Relation: Binance Launches Custody Service for Institutional Investors
In March last year, it announced that it would apply insurance called “Cold Storage Insurance” to the assets it owns. Institutional investor protection will be strengthened through highly cost-effective insurance.
RelationBinance Custody strengthens customer protection, cooperates with insurance giant Rockton and others
The post Leveraging Cold Wallet Assets Binance Launches New Features for Institutional Investors appeared first on Our Bitcoin News.
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