Binance launches a pilot tripartite agreement for institutional investors in the banking sector

ChainCatcher news, according to a press release from PR Newswire, Binance has announced that it has successfully executed the world's first cryptocurrency tripartite agreement in collaboration with third-party banking partners. This solution enables institutional investors to conduct over-the-counter trading of collateral under the supervision of third-party banking partners. This is the first in a series of pilot projects initiated by Binance, which is currently the only cryptocurrency exchange offering such solutions.

The press release states that this arrangement directly addresses the counterparty risk issue, which is the primary concern for institutional investors today. It replicates the framework commonly found in traditional financial markets, allowing investors to allocate crypto assets based on their risk tolerance. The collateral held with banking partners can be equivalent fiat currencies, such as treasury bonds, which have the added benefit of being income-generating assets.