LIVEBinance Launches World’s First Cryptocurrency Tri-Party Arrangement.
Collaboration totally changes manner in which Web2 banks can work together with cryptocurrency services.
A new development by Binance (BNB) enables institutional investors to keep trading collateral, off-exchange in the custody of a third-party banking partner.
Binance, the global blockchain ecosystem behind the largest cryptocurrency exchange by trading volume, is pleased to announce it has successfully executed the world’s first cryptocurrency tri-party arrangement with a third party banking partner.
This arrangement addresses the dangerous issue of counterparty risk in a novel way, making crypto far more accessible for institutional clients. It mirrors a framework common in TradFi, which enables investors to proportion their crypto-asset allocation based on their risk tolerance. Collateral held with the banking partner can be in the form of fiat equivalent such as Treasury Bills, which have the added benefit of being a yielding asset.
The announcement was made days after the appointment of new CEO Richard Teng. Now he has to struggle with a new phase of legal pressure and pay an unparalelled $4.3 billion fine, as covered by U.Today.
Binance's (BNB) core native cryptocurrency, Binance Coin (BNB), is trading at $227.4, being 0.2% up in the last 24 hours, per CoinMarketCap data.
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