Binance Exchange Launches “Mirror” – The Cryptonomist

The world’s exchange giant, Binance, recently announced something a novelty: its new off-exchange settlement solution for institutional investors. 

With the new solution, institutional clients can lock in specific cryptocurrencies via cold wallet. Their assets will then be reflected on the Binance accounts of the same institutions with a 1:1 balance. The new service is named Mirror. 

The Binance exchange targets new customers from institutions

A decidedly strategic move by Binance, which wants to grab everything, including institutional customers, and does so by inaugurating the new Mirror service.  

The security of a cold wallet, will allow investors of a certain depth, to be able to invest with maximum security. A really smart move by Binance, bringing likely institutional clients closer to it, which would make the exchange platform even more powerful. 

Why is Binance’s move a good one? 

At the time we are in, when everyone is looking for transparency and security, such a move shows the platform’s willingness to pander to customer demands. Users of Binance, as well as other platforms, need to have confidence in their investments.

The collapse of FTX brought with it not only a lot of companies, a lot of investments, and a lot of money, but also that feeling of trust that customers had toward their exchange platforms. 

The goal of Binance’s move is to regain the trust of its users, starting now with institutional customers. Undoubtedly, this move will once again impose Binance’s total dominance in the market, compared to other exchange platforms. 

The statement entrusted to the official Binance Institutional website by Athena Yu, who is Vice President of Binance Custody, reads:

“Security is a top priority for institutions that also want access to the important liquidity that Binance Exchange offers. Binance Mirror combines the best of both worlds. 

We have spent much of the last nano improving the process, to help our customers unlock the liquidity of their assets that are stored in our cold wallets. We are very happy about the outcome and look forward to introducing upcoming features that will further enhance the functionality of Binance Mirror.”

How does Binance Mirror work?

With Binance’s new feature, regulated by Binance Custody, institutional clients will have additional trading options. Basically, institutions can lock in their assets by linking them to their cold wallet (this is where Binance Custody steps in). 

Therefore, the client’s assets will appear directly on the Binance exchange. So the customer’s assets will be kept safe in the cold wallets, as long as the position remains open on the exchange. 

Assets held in Binance Mirror, represent more than 60% of all secured assets on Binance Custody. 

The Mirror service offers institutional investors several features and a wide range of products on the Binance exchange:

“We have spent much of the past year refining its operations to help our customers unlock the liquidity of their assets held in our cold storage. We are very excited about where we are today and look forward to introducing our upcoming new features that will further elevate the functionality of Binance Mirror.”

The vice president of the exchange seems to be pleased to point out the hard work Binance and its team have put in to get there. The goal is to have even more security. The quest for this security is also due to the “deep liquidity offered by the Binance exchange.” 

At the moment, the launch of Binance Mirror, is waiting for authorization in seven European Union countries. We can say that Binance Custody, is a very young subsidiary of the exchange giant. In fact, Binance Custody, was born only in 2021, but already 2 years later it offers one of the most sought-after services in the cryptocurrency world. 

Whether in the future this functionality will be exported to smaller investors as well, it has not been specified by Binance. The exchange, however, has among its goals to improve the security of its platform in every way, so who knows what the future holds. 

Meanwhile, the power of the Binance exchange is growing even more. After news of its willingness to expand its staff by 30%, it is launching a novelty like “Mirror.” While the bear market still forces many companies to fail, lay off or declare bankruptcy, Binance and its CEO Changpeng Zhao, seem to be moving forward and not looking back. 

The exchange is fighting for a true monopoly on the industry, over 60% of the asset market is in the hands of the exchange who knows what the future holds.