Binance Mirror is an off-exchange settlement solution meant to reassure security concerns of institutions.

Binance has launched an off-exchange settlement solution called “Binance Mirror” which allows institutional investors to lock collateral by connecting their qualified cold wallet with Binance Custody. The assets can then be mirrored on their Binance exchange account. (Binance)

Binance notes that assets in the cold storage will be kept safe as long as the mirror position remains open on the Binance exchange, which can be settled at any time. The crypto exchange also detailed that assets held in Binance Mirror account for more than 60% of all assets secured on Binance Custody.

Launched in December 2021, Binance Custody is a subsidiary of Binance, offers segregated accounts and wallet systems, and is a regulated institutional digital asset custodian

“Security is a top priority for institutions, who also desire the deep liquidity that the Binance Exchange offers. Binance Mirror brings the best of both worlds,” shares Athena Yu, VP of Binance Custody. “We spent much of last year refining its operations to help our clients unlock the liquidity of their assets held in our cold storage.”

The FTX debacle triggered a large-scale outflow of assets from crypto exchanges as panicked investors chose self-custody in preference to holding their crypto assets on exchanges. Between Dec. 7 to Dec. 13, Binance suffered net withdrawals of over $3.6 billion.

However, with the Mirror facility, institutions can go ahead and avail a number of trading and investment products on Binance without having to look over their shoulder at security risks. These include institutional VIP loans.

The launch of Binance Mirror follows the exchange gaining authorization in seven European Union countries and recently joining an association of certified sanctions specialists.

Related Story:  Binance Debuts Its Own Web3 VC Fund, Raises $500M

Photo by Mariia Shalabaieva on Unsplash