Mithat Can Kartlaşmış 
Binance, the world’s largest cryptocurrency exchange, has announced that it is preparing to offer its customers the ability to securely store their crypto assets through independent custodians, rather than keeping them on the exchange itself. This move is designed to address customer concerns and rebuild trust, particularly in the wake of some issues with regulatory authorities in the United States in 2023.
You might like: Binance Labs Invests in Puffer
According to a report by the Financial Times, Binance’s new service will allow large investors to hold their crypto assets in independent banks. Eligible customers will be able to transfer their assets to trusted banks such as Sygnum and Flow Banks, leading banking institutions based in Switzerland. Binance will offer a more secure storage option by transferring customers’ funds to these banks, while asset trading transactions will only be carried out through Binance or Ceffu.
The sudden collapse of FTX (Binance)
The sudden collapse of FTX in 2022 raised concerns about the security of funds held on exchanges among crypto investors. In the wake of this event, traders and investors began to question the risks of funds on exchanges more. Independent custodians are subject to stricter regulatory oversight than exchanges, and it is emphasized that funds are safer in these types of organizations.
Binance has been working on this new custody solution for over two years. According to exchange officials, this development started before the FTX collapse and was launched at a time when counterparty risks were becoming apparent. However, Binance refrains from providing more details about the banks with which it cooperates. This new service aims to strengthen Binance’s reputation in the cryptocurrency market by offering its customers more security and flexibility.