Binance.US, the American arm of the world's largest cryptocurrency exchange by trading volume, has announced its collaboration with crypto custody firm Fireblocks to bolster its security and compliance measures.
Binance.US and Fireblocks Partnership
The integration, announced on Wednesday, will see Fireblocks’ wallet technology utilized for managing digital assets, custody operations, customer deposits, withdrawals, and staking services.
Technology and Its Advantages
Fireblocks’ advanced key-management system will support Binance.US in expanding its staking services, which already features a broad selection of tokens for a U.S.-based platform. The partnership aims to strengthen the platform’s security infrastructure, aligning with regulatory demands for enhanced transparency and protection of user assets.
Market Reaction and Future Plans
Established in 2019, Binance.US has faced significant regulatory scrutiny, particularly following a sweeping enforcement action last year targeting Binance and its founder, Changpeng Zhao. The Securities and Exchange Commission (SEC) criticized Binance.US in March for not fully complying with requests related to customer assets, including custody and control of private keys.
The integration of Fireblocks with Binance.US marks a significant step in ensuring the security of user assets and strengthening compliance measures. Fireblocks' reliable infrastructure supports functions like digital asset custody, transfers, and wallet management, which are also utilized by other key market players including Coinbase International Exchange, Revolut, and Crypto.com.
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