- Binance is discussing a proposal to let some institutional clients keep their trading collateral at a bank for margin trading.
- The exchange has spoken to professional customers about a setup that would allow them to use bank deposits as collateral.
- Swiss-based FlowBank and Liechtenstein-based Bank Frick have been mentioned as potential intermediaries for the service.
- Institutional digital asset traders have been agitating for change after FTX’s abrupt collapse left many with large losses.
- Binance's discussions come as centralized crypto exchanges face growing pressure from clients seeking ways to guarantee they'd be insulated from a potential failure.
Binance Explores Letting Some Traders Keep Collateral at a Bank
Binance is discussing a proposal to let some of its institutional clients keep their trading collateral at a bank instead of with the crypto platform, a step that could help reduce counterparty risk.
Justina Lee
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