Binance Mirror, an off-exchange settlement solution that enables institutions to access trading and investment products within the Binance Exchange ecosystem without having to post collateral directly on the exchange, was officially launched today by Binance Custody, a regulated and compliant institutional digital asset custodian.
Institutions can use Binance Mirror to lock a certain portion of their asset balance in their Qualified Wallet, Binance Custody’s cold storage option, and mirror it onto their Binance Exchange account with a 1:1 balance. As long as their Mirror position is open on the Binance Exchange, which may be settled at any time, their funds are safe in their own cold wallet.
With a 67% rise in assets mirrored from Binance Custody to the Binance Exchange in the last quarter of 2022, adoption and use cases for Binance Mirror expanded dramatically. More than 60% of the total assets now safeguarded in Binance Custody are held in Binance Mirror, indicating significant institutional confidence in the custodian’s off-exchange solution.
“Security is a top priority for institutions, who also desire the deep liquidity that the Binance Exchange offers. Binance Mirror brings the best of both worlds,” shares Athena Yu, VP of Binance Custody. “We spent much of last year refining its operations to help our clients unlock the liquidity of their assets held in our cold storage. We’re very excited about where we are today and can’t wait to introduce our upcoming new features that will elevate Binance Mirror’s functionality even further.”
Institutions can access various products, including institutional VIP Loans, using their mirrored assets on the Binance Exchange. While the client’s collateral, which was needed to request the loan, remained segregated in their Binance Custody Qualified Wallet, this novel use case was successfully carried out using Binance Mirror.
As a separate, dedicated custody platform that is not a part of Binance Exchange, Binance Custody was introduced in December 2021.
It features segregated account and wallet systems designed to address the security and operational issues faced by institutions involved in the digital asset economy.