Almost a year after the service was officially rolled out, Binance finally launched its institutional trading collateral custody platform.
The platform, called Mirror, is part of the Binance Custody service, meant to give institutional traders the opportunity to store their trading collateral away from the exchange in cold wallets. Binance has been polishing the details of the platform since 2022, and reports that the service is already seeing adoption.
With Mirror, institutional traders can lock up their collateral off-exchange and have the balance mirrored to their trading wallets on Binance. This mirrored balance remains active and open on the exchange throughout the trade.
Beyond cold-wallet features, traders can secure VIP loans against their mirrored balance. In these cases, supporting collateral will be kept separate from exchange-held funds for the duration of the loan. Mirror offers the security benefits institutional investors require for custody of their assets.
Regarding the significant adoption already witnessed by the platform, Binance reports that the volume of funds mirrored to the exchange grew by 67% in Q4 2022. As such, Binance Custody accounts for almost two-thirds of all assets held by institutional investors.
Because regulations demand institutional traders to hold their trading assets with recognized custodians, custody itself is one of the major concerns for big-money crypto investors. A prominent force like Binance offering crypto custody services makes the lives of institutional traders much easier.