Leading cryptocurrency exchange Binance is set to allow institutional investors to keep their collateralized digital assets used for leveraged positions off of its platform. The exchange will allow investors to keep collateral with Binance Custody, which will hold the funds in cold storage.

The co-founders of bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) are pitching investors a new venture that wants to capitalize on the growing list of bankruptcies in the cryptocurrency space.

The Central Bank of Iran is reportedly cooperating with the Russian government on the issuance of a new gold-backed cryptocurrency, as both countries are looking to create a “token of the Persian Gulf region.”

 Top stories in the Crypto Roundup today:

• Binance To Allow Institutions to Keep Crypto Collateral Off Exchange
• Founders of Bankrupt Crypto Hedge fund 3AC Pitch New Crypto Debt Claims Platform
• Iran and Russia Cooperate on Gold-Backed Cryptocurrency
• Centralized and Decentralized Exchange Volumes, 2021-2022

Binance To Allow Institutions to Keep Crypto Collateral Off Exchange

Leading cryptocurrency exchange Binance is set to allow institutional investors to keep their collateralized digital assets used for leveraged positions off of its platform. The exchange will allow investors to keep collateral with Binance Custody, which will hold the funds in cold storage.

Once trades are settled, institutions’ assets would then become accessible again. The feature, called Binance Mirror, essentially mirrors the funds held in cold storage on institutions’ Binance accounts.

Binance Mirror will offer institutional investors access to a range of products that include “institutional VIP Loans.” The feature is being launched after the collapse of Binance’s rival FTX in November. The collapse sparked fear among users about keeping their funds on exchanges.

The incident highlighted the vulnerability of centralized exchanges and the potential risks associated with storing funds on these platforms. As a result, many have turned to decentralized exchanges instead.

Binance Custody VP, Athena Yu, said the exchange spent “much of last year  refining its operations to help our clients unlock the liquidity of their assets held in our cold storage,” and added the solution caters to institutions looking for top-notch security and the “deep liquidity that the Binance Exchange offers.”

Founders of Bankrupt Crypto Hedge fund 3AC Pitch New Crypto Debt Claims Platform

The co-founders of bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) are pitching investors a new venture that wants to capitalize on the growing list of bankruptcies in the cryptocurrency space.

According to a circulating pitch deck, Kyle Davies and Su Zhu are listed as founding members of a distressed debt marketplace called GTX. Davies and Zhu are known for founding 3AC, a hedge fund that at one point had $10 billion in assets, but filed for bankruptcy in July.

The fund was ordered to liquidate by a British Virgin Islands court after it was unable to repay lenders as the cryptocurrency bear market deepened. Advisors tasked with the liquidation of 3AC have claimed that Davies and Zhu have not been assisting in the process. Last week, the advisors served a subpoena to the co-founders via Twitter, stating that their current location is still unknown.

The new marketplace aims to attract over one million FTX depositors who are currently in the middle of a bankruptcy proceeding, according to the presentation deck. Many of these FTX clients are selling their claims at a fraction of their worth to get money quickly, rather than waiting for a potential long-term repayment, the deck reads.

The deck cites a “clear need to unlock” the claims market, which they value at $20 billion. GTX is looking to raise $25 million, with the goal of coming to the market by the end of February at the latest.

Iran and Russia Cooperate on Gold-Backed Cryptocurrency

The Central Bank of Iran is reportedly cooperating with the Russian government on the issuance of a new gold-backed cryptocurrency, as both countries are looking to create a “token of the Persian Gulf region.”

According to Russian news outlet Vedomosti, the token would serve as a payment method in foreign trade.  Alexander Brazhnikov, executive director of the Russian Association of Crypto Industry and Blockchain, said the token would be stablecoin tracking the value of the precious metal.

The stablecoin aims to facilitate cross-border transactions as an alternative to traditional fiat currencies such as the US dollar, Russian Ruble, and Iranian Rial. The report details the gold-backed cryptocurrency would function within a special economic zone in Astrakhan, where Russia has begun accepting Iranian cargo shipments.

Russian lawmaker Anton Tkachev noted that such a stablecoin would only be possible once the digital asset market is fully regulated in Russia. The country’s lower house of parliament is expected to start regulating crypto transactions this year.

Centralized and Decentralized Exchange Volumes, 2021-2022

Centralized exchanges (CEXs) play a crucial role in the industry, acting as a bridge for market participants to enter the cryptocurrency ecosystem.

Despite DeFi's growth, CEXs are still considered a more secure alternative for getting digital asset exposure. Trading volumes across CEXs remained well above decentralized counterparts, as the industry continues to develop and mature.

Read more on CryptoCompare’s Centralised Exchange Retrospective.

State of the Crypto by Top Tier Exchange Volume

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