I recently read an article from a well-known exchange on cryptocurrency triparty arrangement. This is a big deal because it means that crypto is finally becoming more institutional.

What is a triparty arrangement?

A triparty arrangement is a way for institutional investors to trade cryptocurrencies without having to worry about the risk of their counterparty defaulting. This is because the collateral for the trade is held by a third-party custodian, which is typically a bank.

Binance is the first exchange to offer a triparty arrangement.

Binance has been working to make crypto more institutional. They announce that they have successfully executed the world's first cryptocurrency triparty arrangement with a third-party banking partner.

This is a big deal for a few reasons:

• It shows that institutional investors are finally taking crypto seriously.
• It makes it easier for institutional investors to trade cryptocurrencies.
• It could help to reduce the volatility of the cryptocurrency market.

I think this is a positive development for the crypto market. It shows that crypto is maturing and becoming more institutional. This could lead to more widespread adoption of cryptocurrencies and a more stable market.

However, there are a few things to keep in mind:

• Triparty arrangements are still relatively new, so it is not clear how they will work in practice.
• Triparty arrangements could add another layer of complexity to the cryptocurrency market.
• Triparty arrangements could make it more difficult for individual investors to trade cryptocurrencies.

Despite these concerns, I believe that triparty arrangements are a positive development for the crypto market. They could help to make crypto more institutional and stable, which could lead to more widespread adoption.

I will continue to monitor the development of triparty arrangements and report on any new developments.

Disclaimer: This is not financial advice. Crypto exchanges are risky. Please do your own research.