In light of regulatory pressures, Binance’s new offering shows the exchange is focusing on services that prioritise compliance and convenience for its corporate base.
It’s been a busy month for Binance: a week after introducing a new USD on-ramp on its heavily litigated US platform, the exchange has introduced a new off-exchange settlement solution for its institutional and VIP client base.
The solution, called MirrorX, is an evolution of its Mirror predecessor, and it gives corporate clients access to Binance without them needing to move their assets to the exchange. This is made possible through Ceffu – Binance’s institutional custody partner.
The integration allows Binance’s corporate clients to store their digital assets in Ceffu’s third-party crypto custody and “mirror” them to a designated sub-account on Binance at a 1:1 ratio, according to the August 28 announcement.
Once these mirrored assets are credited to the sub-account, clients can access Spot, Margin and Futures trading.
Among the benefits highlighted by Ceffu, MirrorX offers instant asset delegation, facilitating risk diversification, and enabling automatic off-chain settlements daily at T+1 without additional charges.
“Clients using the first generation of Mirror were limited by the amount of assets they could mirror without having to go through a manual fund application process,” wrote Ceffu. “With MirrorX, the mirrored funds are instantly reflected in the client’s designated 3rd-Party Custodian sub-account on the Binance Exchange at a 1:1 ratio, making our gateway between Ceffu and Binance a much more efficient and seamless experience.”
To leverage MirrorX, Binance clients must create a Ceffu account and complete the Know Your Business (KYB) process.
Catherine Chen, who oversees VIP & Institutional affairs at Binance, commented on the significance of MirrorX, stating, “In a landscape where market dynamics are ever-changing, it’s essential to offer our institutional users creative solutions that simultaneously bolster security and streamline operations. The introduction of MirrorX exemplifies our commitment to fulfilling these requirements.”
Ian Loh, President of Ceffu, added, “Regardless of how the markets move, institutions need innovative solutions that combine security and ease of access to liquidity. That combination has been the foundation of our partnership with Binance, and the release of MirrorX reinforces our commitment to delivering custody solutions that live up to the high standards our institutional clients require.”
The unveiling of MirrorX arrives at a time when Binance has faced intense scrutiny and regulatory challenges, but the platform remains committed as ever.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.