Binance has officially launched its institutional trading collateral custody platform called Mirror almost a year after the service was officially rolled out.
The crypto exchange giant says it has been working out the kinks of the platform since its introduction in early 2022 and that the service is already seeing significant adoption.
Binance Mirror officially launched
Binance Custody announced the official launch of Binance Mirror on Jan.16, 2023. Binance Mirror is a platform that is part of the Binance Custody service, and it allows institutional traders to store their trading collateral away from the exchange in cold wallets.
With the platform, big-money players can lock up their collateral off-exchange and have the balance mirrored to their trading wallets on Binance. The announcement stated that this mirrored balance remains active and is open on the exchange during the duration of the trade.
Apart from securely storing posted collateral for institutional leverage traders, Binance says the platform offers other benefits. Traders can secure VIP loans against their mirrored balance. The collateral supporting these loans will be kept separate from exchange-held funds for the duration of the loan.
Binance Custody VP Athena Yu stated that Binance Mirror offers the security benefits institutional investors require for custody of their assets.
“We spent much of last year refining its operations to help our clients unlock the liquidity of their assets held in our cold storage…We’re very excited about where we are today and can’t wait to introduce our upcoming new features that will elevate Binance Mirror’s functionality even further.”Athena Yu, VP Binance Custody.
Binance first announced Binance Mirror in April last year. The exchange even notified customers how to navigate the Ethereum Merge event of 2022. Monday’s announcement constitutes the official roll-out of the platform.
Binance says the custody tool experienced significant adoption, especially in the latter part of last year.
The volume of funds mirrored to the exchange grew by 67% in Q4 2022, the announcement stated. Binance Mirror has also become a major staple of the exchange’s custody market and currently accounts for almost two-thirds of all assets held by institutional investors on Binance Custody.
Custody remains a major concern for institutional crypto players. This is because regulations mandate that institutional traders hold their trading assets with recognized custodians. The absence of regulated custody solutions was a major pain point in the earliest days of the crypto trading market.
Presently, there are several crypto custodians, including crypto native and traditional finance firms like banks.