Cryptocurrency exchange Binance has allowed large traders to store their assets in other banks.
According to the Financial Times, before this, Binance users had to store their assets on the exchange or with its custodial partner, Ceffu. Following the changes, exchange clients can are now able to use crypto-friendly institutions such as Swiss banks Sygnum or FlowBank.
The publication notes that the decision may reflect user concerns about Binance’s regulatory dispute in the U.S., which resulted in the company being fined $4.3 billion in November, adding to fears caused by the bankruptcy of rival exchange FTX a year earlier. Thus, one head of a trading firm cited by the FT noted that he prefers to keep his money in a Swiss bank than in Binance.
“Our banking triparty solution paves the way for greater adoption among institutional investors, as this long-standing model allows investors to manage risk while maximizing their capital efficiency by pledging collateral in the form of traditional assets.”
It is worth noting that Ceffu was involved in the charges that the US Securities and Exchange Commission (SEC) brought against Binance.US in September 2023. The regulator noted that working with Ceffu contradicts the agreements concluded earlier. The SEC said that Binance.US refused to cooperate and violated a previous deal to stop the transfer of assets abroad.