Binance, the world’s largest cryptocurrency exchange, is looking for a solution where some of its customers can use their bank deposits as collateral for spot and futures transactions.
According to a recent report from Bloomberg, Binance has announced that some institutional investors to hold collateral funds through the bank He’s thinking of letting go. With this effort, Binance brought the central exchange potential crisis risks. aims to minimize it.
If the initiative is successful, the money held in the bank will be available to institutional investors. spot And collateral for futures will undertake the task and thus the counterparty risk will be reduced.
According to market analysts, this step taken by Binance is a possible FTX similar bankruptcy and industry-wide destruction can prevent it. Centralized cryptocurrency exchanges Unlike traditional finance it not only keeps the assets of the customers in its own structure, but also provides various loans and services to the customers by executing the transactions. In this case large and a single-center risk brings with it.
According to the sources familiar with the event, Binance has taken its radar to provide this service. Switzerland based There are two banks. Sources of these two banks Bank Frick And FlowBank stated that it might.
While the banks have not yet commented on the subject due to confidentiality conditions, on the details of the development More announcements are expected in the coming days.