Binance introduces third-party custodian service for crypto assets, partnering with Sygnum and Flow banks, to address trust issues with US authorities and FTX collapse.

Binance has introduced a new feature for eligible customers, allowing them to use independent custodians like Swiss banks Sygnum and Flow to hold their cryptocurrency assets. This comes in response to traders' loss of trust in the exchange due to issues with US authorities in 2023. The feature aims to reduce the risk associated with leaving money on an exchange, particularly after the FTX collapse in 2022. Binance has been working on a triparty solution with banks for over two years, claiming that this development began before counterparty risk became prominent.

January 30, 2024
7 Articles