- Money held at bank would be collateral for margin trading
- Crypto funds have pushed for change after FTX failure
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.
Binance Explores Letting Some Traders Keep Collateral at a Bank