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Binance Launches Pilot Program Allowing Banks to Safely Store Trading Collateral

Binance launches a pilot program that allows banks to store trading collateral outside of the exchange platform.

This program aims to reduce counterparty risk for institutional investors by allowing them to keep collateral with a third-party bank.

The program replicates a common framework in traditional financial markets and allows collateral to be held in the form of cash or treasury bonds, enabling investors to earn returns while trading.

Nouveau programme de Binance

Binance cryptocurrency exchange platform announced on November 30 the launch of an innovative pilot program. This program enables institutions to store their trading collateral in a third-party bank instead of depositing it on the cryptocurrency exchange.

This new Binance program is designed to reduce counterparty risk, a major challenge for institutional investors in the cryptocurrency sector. By allowing institutions to hold their collateral in a third-party bank, Binance offers a more secure solution for cryptocurrency trading.

Counterparty risk has long been a concern for institutional investors throughout the industry. Our team of crypto natives and traditional finance professionals have been exploring a tripartite banking agreement for over a year to address their concern.

Catherine Chen, Binance executive

Un cadre inspiré des marchés financiers traditionnels

Binance takes inspiration from traditional financial market practices by offering institutional investors the flexibility to manage their crypto asset allocation according to their risk tolerance. This program allows institutions to hold their collateral in the form of cash or treasury bonds, giving them the opportunity to generate returns while trading.

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