Binance has announce the launch of a crypto asset storage call as ‘Binance Mirror‘ as investors return to the sector. The global crypto market cap has shown a significant recovery in the first three weeks of 2023, going from $800 billion (approx. Rs. 65,45,524 crore) to its current valuation of $990 billion (approx. Rs. 80,97,818 crore).
With ‘Binance Mirror,’ which specifically caters to institutional investors, the firm will provide an off-exchange cold crypto storage solution to hefty investors, so that their fears around losing their finances to hacks or liquidity crunches could be reduce as much as possible
Binance is taking a bullish approach towards shifting the focus of its services towards cold storages of crypto assets.
Cold storages or wallets are not connect on the Internet and are not reliant on the databases of exchanges.
Binance said in an official statement :
“Through Binance Mirror, institutions lock a specified amount of their asset balance available in their Qualified Wallet, Binance Custody’s cold storage solution, and mirror it onto their Binance Exchange account with a 1:1 balance. Their assets remain secure in their segregated cold wallet for as long as their Mirror position remains open on the Binance Exchange, which can be settled at any time,”.
In 2022, the FTX crypto exchange collapse dramatically after encountering a liquidity crunch.
Other crypto firms like Celsius and Voyager also drew curtains on their businesses after being struck hard by the ongoing crypto winter.
Many hackers and scammers have also been targeting crypto exchanges to drain funds.
Citing a Chainalysis report, Forbes said in 2022, over $3 billion (approx. Rs. 31,076 crore) was stolen in 125 hacks.
Amid these circumstances, more people have begun to move out the custody of their crypto holdings into cold storages.
In a recent report, Glassnode had said that around 5,50,000 Bitcoins worth $9.2 billion (approx. Rs. 76,760 crore) were move into cold storages in 2022.
Athena Yu, VP of Binance Custody said :
“Security is a top priority for institutions. We spent much of last year refining its operations to help our clients unlock the liquidity of their assets held in our cold storage,”.
Binance has bagging operational licences in many parts of the world.
Binance has permission to operate in 7 member states of the European Union, as well as in parts of the UAE.
The Binance is expecting to onboard institutional investors from all these regions
