Key Takeaways:
Anchorage Digital integrated its Atlas off-exchange settlement platform with Binance, letting institutional clients trade on the world's largest crypto exchange while keeping assets in qualified custody at the federally chartered US crypto bank rather than depositing funds directly onto Binance.
"Institutions need crypto market structure that reflects the standards they already rely on in traditional finance," Nathan McCauley, co-founder and CEO of Anchorage Digital, said. "Off-Exchange Settlement, powered by Atlas, is designed to separate custody from execution, helping institutions access exchange liquidity while keeping assets in secure custody."
Under the arrangement, institutions can pledge crypto assets or USD deposits held with Anchorage as collateral to meet Binance's margin requirements without pre-transferring those assets to the exchange. The model mirrors how institutional trading works in traditional markets, where custody and execution are kept separate and assets are transferred only at final settlement. Eligible collateral also includes tokenized real-world assets such as BlackRock's BUIDL, Circle's USYC, and Franklin Templeton's iBENJI, according to the companies.
The integration addresses a structural barrier that has kept institutional capital on the sidelines since the collapse of FTX in 2022: exchange counterparty risk. Binance first piloted triparty banking in 2023 and has continued expanding its network of banking partners. The Anchorage integration marks the first exchange integration within Atlas, which is designed to support trading, lending, collateral management, and other capital markets workflows. Anchorage Digital, backed by Andreessen Horowitz, Goldman Sachs, KKR, GIC, and Visa, carries a $4.2 billion valuation.
The partnership follows a broader push across crypto exchanges to offer custody-separated trading. BitMEX integrated with Zodia Custody in April, letting institutional clients trade derivatives while keeping collateral in segregated custody. Bitget adopted a similar model in June through Fireblocks Off Exchange, and KuCoin Institutional integrated Ceffu's MirrorX platform in January. Each structure eliminates the requirement to pre-fund exchange accounts, reducing operational risk and improving capital efficiency for professional traders.
"Working with Anchorage Digital gives institutional clients another way to access Binance liquidity while managing custody and collateral through a model that is more familiar to traditional financial markets," Catherine Chen, Head of VIP & Institutional at Binance, said. The service is initially available to eligible institutional and professional clients, with financial terms of the partnership not disclosed.
This article is for informational purposes only and does not constitute investment advice.
