Aiming to reduce counterparty risk that has long deterred large traders, Anchorage Digital and Binance have introduced an off-exchange settlement solution for institutional crypto trading. The arrangement lets institutions trade on Binance while keeping their assets in segregated custody at Anchorage Digital Bank, rather than holding them directly on the exchange. This structure separates trading activity from asset custody, addressing concerns about exchange solvency and the security of funds held on trading platforms. By allowing institutional participants to maintain control of their assets through a regulated custodian, the partnership seeks to provide greater protection while still enabling access to Binance's liquidity. The move reflects a broader industry trend toward custody arrangements that limit exposure to exchange-related failures, a priority that has grown following high-profile collapses across the crypto sector in recent years.
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