According to people close to the matter, Binance plans to allow its institutional customers from trader on his platform by depositing funds in a bank account as warranty.
The number 1 in crypto-trading could offer institutional investors the opportunity to use bank deposits as warranty for the trading for margin and spot trading as well as derivatives trading, reports Bloomberg on Tuesday, citing unnamed sources.
Binance, which declined to comment on the matter, is said to be working with Swiss bank FlowBank and Liechtenstein financial institution Bank Frick to set up this service.
According to sources, funds would be frozen at the bank and the exchange would lend stablecoins to traders. At the same time, the frozen money would generate interest to cover the cost of borrowing on the exchange. Binance.
Earlier this year, the CZ-led crypto exchange launched a service called Mirror, enabling institutional investors to access Binance products without having to deposit collateral. The latter must lock tokens on cold wallets managed by Binance Custody and then mirror them on the platform.
Today, centralized crypto exchanges are trying to reassure institutional investors, who, like retail traders, are still reeling from the shock of FTX’s surprise bankruptcy last autumn.
Follow Corners.en on TwitterLinkedin, Facebook or Telegram so you don’t miss a thing.