The Financial Times has highlighted a strategic move by Binance, the leading cryptocurrency exchange, to allow high-net-worth investors to store their digital assets in Swiss banks. This development comes as a significant shift from the previous arrangement where assets were held either directly on the Binance platform or with its custody partner, Ceffu.
Binance’s initiative offers investors the option to use Swiss banks like Sygnum or FlowBank, which are receptive to cryptocurrency, for asset storage. This alternative storage solution is seen as a response to regulatory concerns in the US and the aftermath of the FTX exchange collapse, aiming to provide investors with enhanced security and confidence.
Binance Boosts Investor Confidence Amid Regulatory Scrutiny
A crypto trading company president expressed a preference for Swiss banks over Binance for funds storage, reflecting a desire for more secure trading practices. This sentiment underscores the importance of trust and stability in the crypto industry, especially following significant fines and the FTX debacle.
A Binance spokesperson confirmed that the exchange has been seeking banking solutions for nearly two years to address counterparty risks, which are a widespread concern in the cryptocurrency sector. Although specific bank partnerships were not disclosed, the move indicates Binance’s commitment to client asset security.
Binance remains the most prominent cryptocurrency exchange globally, with a trading volume surpassing $12.65 billion in the last 24 hours, followed by Coinbase and Kraken. This dominance in the market is further solidified by the exchange’s proactive steps to ensure the safety and regulatory compliance of its investors’ assets.
