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Binance Expands Crypto Custody Reach Through Alliance With Swiss Banks

Press Releases Crypto News Bitcoinist Binance Expands Crypto Custody Reach Through Alliance With Swiss Banks

Binance, the world’s largest cryptocurrency exchange by trading volume, has entered into a strategic partnership with Swiss banking institutions to mitigate growing concerns surrounding counterparty risk in the crypto industry, as reported by the Financial Times.

This move follows Binance’s regulatory fines imposed by US authorities in 2023. As part of the collaboration, Binance has allowed “larger traders” to store their assets at independent banks, including Switzerland’s Sygnum Bank and Flow Bank, and the existing custodian Ceffu.

Binance Addresses Counterparty Risk

Previously, Binance clients could hold their assets on the exchange or through Ceffu, which US regulators described as a “mysterious Binance-related entity.” However, with the new collaboration, traders now have the opportunity to store their assets with established Swiss banks, which are subject to regulatory oversight.

The head of an unnamed crypto trading firm preferred Swiss banks to the Financial Times, stating that they offer “potentially greater security” than keeping funds on the exchange.

According to the report, Binance emphasized that it had been developing a banking triparty solution long before counterparty risk became a prominent issue. This move is part of its ongoing efforts to address industry-wide concerns.

The collapse of FTX, a rival exchange, in 2022 and US authorities’ recent regulatory crackdown on Binance have heightened concerns regarding the safety of leaving funds on exchanges.

As previously reported, Binance faced a record $4.3 billion fine after pleading guilty to criminal charges re

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Author: Ronaldo Marquez

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