Binance, the world’s largest cryptocurrency exchange, had to bow to the demands of large investors. The stock market now allows large investors to keep their assets elsewhere. In another development, Binance Labs invested in the Ethereum re-staking protocol Puffer.
Binance accepted the demands of major investors!
According to the Financial Times, Binance now allows larger investors to keep their assets in independent banks. Users previously had to hold their assets on the exchange or with custody partner Ceffu. They will now also have the opportunity to use crypto-friendly institutions such as Swiss banks Sygnum or FlowBank.
cryptokoin.comAs you follow from , US regulators fined Binance $4.3 billion in November last year. Before this, FTX, a strong rival of Biannce, went bankrupt. These developments led to increased concerns among crypto players. According to experts, Binance’s latest move reflects its uneasiness about the regulatory dispute in the United States. “I would rather park my money in a Swiss bank than Binance,” said the head of a crypto trading firm the FT spoke to.
The exchange has been exploring a three-party arrangement for some time
Binance said in November that it had been exploring banking three-party regulation for more than a year. In this regard, he referred to an agreement made with his customers and a bank custodian. However, he did not disclose the names of the banks. The stock exchange spokesperson made the following statement:
Our banking three-party solution is paving the way for greater adoption among institutional investors. Because this long-standing model allows investors to manage risk while maximizing their capital efficiency by providing collateral in the form of traditional assets.
Binance Labs invests in Puffer
Binance Labs, the $10 billion venture capital and incubation arm of crypto exchange Binance, has invested in Puffer Finance, an Ethereum liquid re-staking protocol built on EigenLayer. By the way, he did not mention a figure regarding the investment amount in his statement. However, he did include an explanation of how Puffer would use the funds. In this regard, Puffer will use the funds to develop the Layer-2 network.
Binance Labs stated that the funds will be used to promote Puffer’s native liquid re-staking token, pufETH, to BNB Chain users. He also noted that this will enable users to earn staking and restaking rewards. This investment comes as restaking has gained momentum since the launch of EigenLayer. Last week, ClayStack entered the Ethereum restaking space via EigenLayer. Earlier this month, its developers launched the EigenLayer-based Renzo Protocol in beta. Moreover, it has already amassed over $155 million in assets, according to data on its website. According to DeFi Llama data, EigenLayer itself currently has a total valuation of over $2 billion. Puffer co-founder and CTO Jason Vranek made the following statement at an event last year:
Puffer is a high-level Ethereum liquid staking method where you earn PoS rewards with validators. However, we also perform native restaking on EigenLayer to obtain additional rewards. Local re-staking is where you reuse your Ethereum validator’s Beacon Chain ETH to secure different Eigenlayer implementations or ‘AVS’.
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