EddieJayonCrypto
30 Jan 24
Binance is making a strategic shift to address counterparty risk by allowing select traders to entrust their assets with renowned Swiss banks, such as Sygnum Bank and Flow Bank. This move comes in response to traders' preferences for regulated and secure banking options, especially following the col...
Binance is addressing counterparty risks by allowing select traders to entrust their assets with renowned Swiss banks, such as Sygnum Bank and Flow Bank. This shift comes in response to traders' preferences for regulated and secure banking options following the FTX collapse in 2022. The recent successful funding round of $40 million for Sygnum Bank reflects the market's trend towards more regulated trading ecosystems.
Crypto exchange giant Binance is embracing the stability and security of Swiss banking institutions as a strategic response to heightened concerns over counterparty risk. This pivot allows select traders to opt for more regulated and secure banking options, marking a step in the right direction for the exchange amidst global crypto regulations. This move departs from Binance's previous arrangement, limiting clients to storing assets directly on the exchange or with Ceffu, its exclusive institutional custody partner. The inclusion of independent banks in the custodial process is a direct response to traders' preferences and the market's trend towards more regulated trading ecosystems in light of past collapses and regulatory challenges within the crypto space. Sygnum Bank's successful funding round of $40 million is set to bolster its expansion and innovation, aligning with the broader market direction towards more regulated trading ecosystems, institutional involvement, and security.
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