Binance has introduced the possibility for some traders to hold their assets on independent banks, and no longer on the CEX

Binance's moves

Perhaps to respond to a discomfort still present among Binance users following the conviction in the US last November, the exchange has introduced a new solution in favor of the wealthiest traders: the possibility of holding their assets in independent banks, and no longer on the platform.

This was announced by the Financial Times, which also underlined how crypto-friendly banks such as Sygnum and FlowBank have been added to Binance's traditional custody services (such as Ceffu).

Evidently, investors were asking for solutions in this direction, so as not to give any room for concerns about FTX-like scenarios.

Binance is a new path for institutions

The collaboration with banking institutions in the operational sphere, however, had already been in place for some time, to prevent a "counterparty risk" now common to the entire CeFi industry.

Already last December, for example, Binance announced that it had reached an agreement with a "banking partner" to allow institutional investors to hold their collateral outside the exchange while operating on it.

In essence, it is a "tripartite agreement" that allows investors to allocate their assets in the form of collateral with a third-party banking institution in the form of fiat or Treasury bills, and then get a loan from the exchange for trading at margin. With the side benefit of having two potentially profitable asset groups.

In the same way, therefore, entities such as trading companies could be allowed to deposit funds no longer on the exchange but on an external bank, while continuing to take advantage of the CEX services.