Binance will permit institutional investors to keep collateralized cryptocurrency used for leveraged positions off the platform. Binance said in a statement on Monday that the exchange will allow investors to post collateral with Binance Custody, which will hold the assets off the internet in cold storage wallets. Once trades are settled, the assets will be made available to the user again. The feature, known as Binance Mirror, could be a boon for crypto investors trading in leveraged markets, as most crypto traders must keep their collateral on the exchange in order to trade. However, using cold storage wallets allows users to continue trading cryptocurrency during volatile sessions without experiencing massive outflows on an exchange.
