In a recent announcement, Binance, the world’s leading cryptocurrency exchange, unveiled MirrorX. This innovative off-exchange settlement solution allows Binance VIP clients to keep their assets securely in Ceffu Global’s independent custody while seamlessly accessing the Binance exchange.
Binance Partners With Ceffu To Enhance Institutional Trading
In a significant move to enhance trading for its VIP and Institutional clients, Binance has partnered with Ceffu to introduce MirrorX, an innovative off-exchange settlement solution. This unique offering allows corporate clients to engage in high-volume trading on Binance’s platform while keeping their assets securely stored in Ceffu’s custody. MirrorX stands as the only off-exchange settlement solution fully integrated with Binance, providing a seamless and secure trading experience.
MirrorX enables Binance’s VIP and Institutional clients to keep their digital assets in Ceffu’s independent crypto custody while simultaneously mirroring these assets to a specific sub-account on Binance at a 1:1 ratio.
Once these mirrored assets are allocated to their sub-account, clients gain access to a wide range of Binance offerings, such as Spot, Margin, and Futures trading. This setup offers an extra layer of security and convenience, as it ensures that clients’ assets remain separate and securely stored in Ceffu’s custody while utilizing the MirrorX feature.
To use the MirrorX service, Binance VIP and Institutional clients are required to open a Ceffu account and complete its KYC verification. Existing Ceffu clients must set up a new Binance sub-account, designated as “3rd-Party Custodian,” specifically for MirrorX use. Currently, Ceffu is only accepting corporate customer applications.
In early 2023, Binance unveiled Binance Mirror, an off-exchange settlement platform designed for institutional investors to engage in trading while utilizing cold storage. This new service is built upon Binance Custody, a regulated entity specializing in institutional digital asset custody, and allows for the mirroring of assets stored in cold storage at a 1:1 collateral ratio within a Binance account.
Robust Benefits Of Binance’s MirrorX OTC Settlement Solution
Binance’s newly launched MirrorX offers a suite of benefits designed for seamless and secure asset management. One of the standout features is the instantaneous asset delegation, where any request to mirror digital assets from Ceffu to Binance is immediately reflected in the client’s designated 3rd-Party Custodian sub-account, ensuring instant fund availability.
Additionally, MirrorX introduces auto-settlements, where all positions are automatically settled off-exchange at T+1 at no extra cost. Importantly, any transfer out of the 3rd-Party Custodian sub-account will automatically trigger this settlement, adding an extra layer of convenience for the user.
MirrorX also provides flexibility in asset withdrawal. Clients can either withdraw part or all of their mirrored assets directly from their Binance account by transferring from their 3rd-Party Custodian sub-account to their Parent Account, or they can undelegate their mirrored funds directly from Ceffu.
Lastly, MirrorX offers a unique risk diversification advantage. By allowing clients to keep their assets in Ceffu’s independent third-party custody, it minimizes asset exposure while still giving clients access to Binance’s superior liquidity. This combination of features makes MirrorX an attractive option for VIP and Institutional clients looking for both security and efficiency in their trading activities.
Catherine Chen, Head of Binance’s VIP & Institutional department, said, “We’re constantly listening to our clients’ feedback and to the market needs that we can support. Binance is already hugely attractive to institutional investors by offering the world’s deepest liquidity and market-leading trading solutions, and through our partnership with Ceffu, we bring an added layer of risk management that allows our clients to diversify their exposure while still maintaining access to our liquidity. This positions us at the forefront of institutionalizing the digital asset ecosystem.”
Lately, Binance has encountered a series of regulatory challenges and disruptions in payment partnerships. Both Mastercard and Visa have put their collaborations with the crypto platform on hold due to increased regulatory oversight.
Additionally, Binance has lost its banking connections in the United States and Australia, and its European banking partner plans to discontinue support come September.
