Binance and more banking arrangements

Binance, one of the leading platforms in the field of cryptocurrencies, announced the launch of the first three-party banking arrangement in the world of cryptocurrencies.

This innovation allows institutional investors to hold their collateral for over-the-counter trades under the custody of an external banking partner.

This development effectively addresses counterparty risk, opening the door for institutional investors to enter the cryptocurrency market with greater safety.

Catherine Chen, Head of the VIP and Institutional Department at Binance, emphasized the great importance of this issuance for the institutional cryptocurrency sector.

Katherine notes that the team, made up of crypto and traditional finance experts, has been developing this solution for over a year to address concerns about counterparty risk.

The announcement comes days after Richard Teng was appointed as the new CEO of Binance, and he faces major challenges including legal pressure and a massive $4.3 billion fine.

In one of his first public statements, Teng emphasized that Binance is a debt-free platform, with strong revenues and profits.

BNB, the platform's native currency, is trading at $227.4 and has seen a 0.2% rise in the past 24 hours, according to CoinMarketCap data.

This pilot represents the first step in a series of future initiatives aimed at integrating cryptographic tools with institutional funding levels.

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