Binance signed a tripartite agreement for institutional investors with a third-party banking partnership.
According to the statement made by Binance, institutional investors will be able to keep the collateral they use in trading outside the exchange, in the custody of a third-party banking partner.
The agreement is important for institutional investors today. biggest concern It was stated that this was done to eliminate the counterparty risk.
This agreement allows institutional investors to access liquidity on Binance but retain their collateral in doing so. keep them out of the stock market will allow.
It was stated that the collateral asset to be held by the banking partner may consist of cash equivalents such as treasury bills that offer repayment opportunities.
Binance, With which bank or banks? He did not share the information that he was working.
“Counterparty risk has long been a concern for institutional investors across the industry.” Binance VIP and Corporate Manager Catherine Chen said:
“We have developed a solution that allows institutional clients to optimize their collateral and cryptocurrency investments, similar to how traditional markets operate. “We are in close contact with a number of banking partners and institutional investors who have expressed interest in participating in this.”