Binance Will Allow Institutional Investors to Store Collateral on Cold Wallets
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Cryptocurrency exchange Binance has announced that from now on it will allow institutional investors to store collateral for leveraged positions off the platform.
According to CoinDesk, the Binance Custody service will be used to store collateral on cold wallets. In addition, the assets belonging to users will also be protected against on-chain hacks that hot wallets are susceptible to.
The exchange wants to solve the problem of trust in centralized trading platforms caused by the crash of FTX in November.
Binance launched in November the Proof-of-Reserves function for Bitcoin holders. The decision allowed BTC owners to make sure that the exchange keeps their funds in full and all of them are secured.
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