Binance US, the American dollar-denominated arm of the world’s largest cryptocurrency exchange by volume, has selected Prime Trust LLC as its exclusive provider of custodial services.
This is a big deal because it’s the first time that Binance, which is headquartered in Malta but has offices all over the world, has chosen to work with a US-based partner for its custodial needs. Up until now, Binance has used partners like Coinbase and Xapo for its custodial services.
Why does Binance need a custodian? Because when you’re dealing with large amounts of other people’s money, especially in the Wild West world of cryptocurrency, it’s important to have a third party that can hold onto those assets and make sure they don’t disappear.
It’s also worth noting that Binance US is subject to stricter regulations than Binance’s other exchanges because it deals in fiat currency (USD). So it makes sense that the company would want to work with a US-based partner that is already compliant with those regulations.
Prime Trust is a Nevada-chartered limited liability trust company that provides crypto custodial services, among other things. The company says it holds “more than $12 billion in assets in custody for more than 250,000 clients.”
Some of those clients include major names in the crypto world like ShapeShift, Bitfinex, and Kraken. So Binance US is in good company.
And Prime Trust says it will offer “competitive rates” to Binance US users who want to custody their assets with the company.
So what does this mean for Binance US users? It means they now have another option for storing their cryptocurrencies safe and sound. And it also means that Binance US is one step closer to becoming a fully compliant exchange that offers a wider range of services to its users.