Binance, the cryptocurrency exchange, has announced the launch of a crypto asset storage facility dubbed Binance Mirror as investors return to the sector. The global crypto market capitalization has recovered significantly in the first three weeks of 2023, going from $800 billion (approximately Rs. 65.45.524 billion) to its current valuation of $990 billion (approx. Rs. 80.97.818 billion). ) gone up. With “Binance Mirror” specifically aimed at institutional investors, the company will offer affluent investors an over-the-counter cold crypto storage solution so that their fears of losing their finances to hacks or liquidity shortages can be reduced as much as possible
binance is taking an optimistic approach to shifting the focus of its services to cold storage of crypto assets. cold storage or wallets are not connected to the Internet and do not rely on exchange databases.
“Through Binance Mirror, institutions lock a certain amount of their asset balance available in their Qualified Wallet, Binance Custody’s cold storage solution, and mirror it with a 1:1 balance on their Binance Exchange account. Their assets remain secure in their segregated cold wallet as long as their mirror position remains open on Binance Exchange, which can be settled at any time,” the exchange said in one official statement.
Last year, the FTX crypto exchange collapsed dramatically after encountering a liquidity crisis. Other crypto companies like Celsius and Traveller also shut down their stores after being hit hard by the ongoing crypto winter.
Several hackers and scammers are also targeting crypto exchanges to siphon off funds. Citing a Chainalysis report, forbes said over US$3 billion (around Rs.31,076 crore) was stolen in 125 hacks last year. Under these circumstances, more and more people have started to move the storage of their crypto assets to cold storage.
In a recent report, Glassnode written down that last year around 5,50,000 bitcoins worth 9.2 billion US dollars (approx.
“Security is a top priority for institutions. We have spent much of the past year refining its operations to help our clients unlock liquidity from their assets held in our cold storage facility,” said Athena Yu, VP of Binance Custody.
Binance has slumped Operating Licenses in several parts of the world. It is currently licensed to operate in seven European Union member states as well as parts of the UAE. The exchange expects to bring institutional investors from all of these regions on board
