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Anchorage Digital and Binance Launch Off-Exchange Settlement for Institutional Crypto Trading

Created at 30 Jun · 6:50 PM1 source↑ Market-relevant
IN SHORT

Anchorage Digital and Binance have partnered to offer off-exchange settlement for institutional crypto trading. This allows institutions to trade on Binance while maintaining custody of their assets with Anchorage Digital Bank, enhancing security and operational efficiency.

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Who's Involved

Anchorage Digital
Digital asset bank that partnered with Binance
Binance
Cryptocurrency exchange that partnered with Anchorage Digital

↳ Why This Matters

This partnership addresses a key concern for institutional investors regarding the security of their digital assets by separating trading execution from custody, potentially increasing confidence and participation in the crypto market.

Key facts

  • Anchorage Digital and Binance have launched a new service for institutional crypto trading.
  • The service facilitates off-exchange settlement, allowing assets to remain in custody at Anchorage Digital Bank.
  • This provides an alternative to holding assets directly on the Binance exchange.
  • The initiative aims to improve security and operational efficiency for institutional clients.

Anchorage Digital, a digital asset bank, and Binance, a major cryptocurrency exchange, have introduced a new service designed to facilitate off-exchange settlement for institutional crypto trading. This collaboration allows institutional clients to execute trades on the Binance platform while ensuring their digital assets are held in segregated custody by Anchorage Digital Bank. This approach aims to mitigate counterparty risk associated with holding funds directly on an exchange and enhance the overall security and operational efficiency for large-scale crypto investors.

Frequently asked questions

Off-exchange settlement means that the actual transfer of assets does not occur directly on the trading platform (the exchange). Instead, assets are held by a third-party custodian, and only the net settlement or confirmation of trades happens between the parties.

It enhances security by reducing the risk of assets being held on the exchange itself. It also offers greater operational flexibility and potentially better risk management for large-volume traders.

Anchorage Digital Bank is a federally chartered digital asset bank that provides custody, trading, and other financial services for digital assets, primarily serving institutional clients.

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Cadence

How It Developed

Anchorage Digital and Binance launched an off-exchange settlement service for institutional crypto trading.
The service enables institutions to trade on Binance while keeping assets in custody at Anchorage Digital Bank.
This arrangement aims to provide enhanced security and operational efficiency for institutional investors.

Sources

T1
Anchorage Digital and Binance Launch Off-Exchange Settlement for Institutional Crypto TradingBitcoin Magazine

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