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.

The world’s largest crypto exchange has spoken to some of its professional customers about a setup that would allow them to use bank deposits as collateral for margin trading in spot and derivatives, according to four people familiar with the matter.

Swiss-based FlowBank and Liechtenstein-based Bank Frick have been mentioned as potential intermediaries for the service, said two of the people, who asked not to be identified ...