Binance exploring a new way to reduce the counterparty risk on behalf of direct collateral deposits in some particular Banks.
Binance is a top-ranked Crypto firm. Initially, this exchange was founded as a Chinese entity by Changpeng Zhao (CZ) but later he shifted the whole Binance services outside mainland China citing harsh enforcement action on the crypto firms. In 2021, China imposed a blanket ban on crypto firms. CZ is also a China origin person but he has been Canadian by citizenship since the age of 13 years.
On 30 May 2023, Bloomberg reported that the Binance crypto exchange proposed an idea to reduce the country party risks significantly.
Under the new plan, Binance is considering establishing direct collaboration with Swiss-based FlowBank and Liechtenstein-based Bank Frick.
The report noted that if Binance succeeded in its plan then it will allow some of its institutional clients to keep their trading collateral at a bank instead of on the crypto platform.
For this plan, Binance requires approval from its Institutional customers. Crypto experts believe that Binance will grab better support for this new plan because already several institutional customers are demanding more security & safety of funds, following the bankruptcy of the FTX crypto exchange.
Binance invests in Banks
Just 2 days ago, Binance CEO CZ appeared in an interview with Bankless Podcast and there he said that Bank businesses are not much beneficial & also have several risks but still Binance will allocate a small investment in the banking sector, to create a Crypto friendly environment for the crypto firms.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.