Anchorage Digital brings off-exchange settlement to Binance
Anchorage Digital has integrated its off-exchange settlement platform with Binance, allowing institutional clients to trade on the exchange while keeping their crypto and cash in qualified custody at the federally chartered US crypto bank rather than depositing assets directly onto Binance. Under the arrangement, institutions can use crypto assets or US dollar deposits held with Anchorage as collateral to meet Binances margin requirements without first transferring those assets onto the exchange. The companies said the model separates custody from trade execution, allowing assets to remain with an independent custodian until settlement. The service is initially available to select institutional clients and marks the first off-exchange settlement implementation for Anchorage Digitals Atlas platform, which the company said is designed to support institutional trading, settlement, lending and collateral management through custody-based infrastructure. The collaboration addresses one of the biggest obstacles keeping institutional capital on the sidelines of crypto markets: exchange counterparty risk. By eliminating the traditional requirement to pre-fund trades, this could bring crypto trading closer to the custody-and-execution model long used in traditional financial markets. Financial terms of the partnership were not disclosed. Related: ESMA MiCA warning puts Binance EU service changes under scrutiny Crypto exchanges expand off-exchange settlement offerings Off-exchange settlement has gained traction among institutional crypto