Binance has introduced options for larger traders to hold assets with independent banks, such as Sygnum Bank and Flow Bank, in response to trust issues following the FTX collapse and regulatory challenges. This new strategy aims to mitigate counterparty risk and enhance safety for institutional investors amidst ongoing scrutiny from US watchdogs.

Previously, customers could only hold their funds either on the exchange or via the custodian Ceffu, which has been referred to as a "mysterious Binance-related entity" by US regulators. Binance's latest effort could reduce the growing unease over the company's safety since it was a main target of the US Department of Justice.

The firm stated that it had started exploring the "banking triparty solution" almost two years ago, before the attacks from the SEC and the DOJ. Binance believes this arrangement directly tackles the issue of counterparty risk, the primary concern for institutional investors today, allowing them to better manage risk and further scale their activity.