Binance, one of the world’s leading cryptocurrency exchanges, does in fact use Prime Trust LLC to custody its users’ assets. Prime Trust is a qualified custodian that is regulated by the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Binance has chosen to use Prime Trust because of its high-security standards, cold storage capabilities, and insurance coverage.
Prime Trust offers many features that make it a desirable custodian for Binance. One of the most important features is its high-security standards. Prime Trust employs multiple layers of security, including physical security, cryptographic security, and process security. Physical security measures include guards, cameras, and biometric scanners.
Cryptographic security measures include multi-signature wallets and hardware security modules. Process security measures include segregation of duties and dual control. These measures make it very difficult for anyone to steal assets from Prime Trust.
Another important feature of Prime Trust is its cold storage capabilities. Cold storage is a process of storing cryptocurrencies offline in order to protect them from hacking attempts.
Binance uses cold storage for the majority of its users’ assets, only keeping a small percentage in online hot wallets for withdrawals and deposits. This helps to further protect users’ assets from theft.
Finally, Prime Trust offers insurance coverage for the assets it custodies. This insurance protects against loss of assets due to theft, fraud, or other criminal activities.
It also protects against loss due to natural disasters or other events beyond our control. The insurance coverage provides an extra layer of protection for users’ assets.
In conclusion, Binance does use Prime Trust LLC to custody its users’ assets. Prime Trust is a highly secure custodian that offers cold storage and insurance coverage.
These features make it an ideal choice for Binance.