Clients will be able to choose to deposit in crypto-friendly banks.

The world’s largest cryptocurrency exchange Binance has allowed large traders to store their assets in other banks, such as crypto-friendly Sygnum or FlowBank in Switzerland, a notice on Binance’s blog says. 

Previously, users were required to keep their assets either on the Binance platform or with its custodial partner, Ceffu. The move is seen as a response to user concerns arising from Binance's regulatory disputes in the U.S., resulting in a 4.3-billion-dollar fine in November 2023. Additionally, apprehensions were fueled by the previous year's bankruptcy of FTX, a rival exchange.

“Our banking triparty solution paves the way for greater adoption among institutional investors, as this long-standing model allows investors to manage risk while maximizing their capital efficiency by pledging collateral in the form of traditional assets,” a Binance spokesman was quoted as saying by the Financial Times. 

More to read:
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Ceffu was cited in the charges brought by the U.S.

Securities and Exchange Commission (SEC) against Binance.US in September 2023. The regulator contended that Binance.US's collaboration with Ceffu had violated prior agreements, alleging non-cooperation and a breach of a previous deal to cease transferring assets abroad.

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