Shiba Inu (SHIB), Audius (AUDIO), Perpetual Protocol (PERP), SKALE Network (SKL) and Injective (INJ) are now supported by Binance Custody, according to an announcement made on Feb. 20.
While traditional financial institutions typically act as custodians by law, cryptocurrencies have allowed people to become their own bank to avoid any counterparty risks. However, due to the proliferation of crime within the cryptocurrency industry, institutional investor typically needs third-party custody services to safeguard their wealth instead of controlling their holdings themselves.
Cryptocurrency custodians store clients’ private keys and usually offer insurance on the crypto assets they manage.
Such companies as Gemini and Nuri also offer custody services for retail investors, but BitGo and Paxos only accept institutional clients such funds and family offices.
Binance rolled out its institutionally-grade custody service in mid-December amid growing demand for such products. Major institutions put a significant amount of capital into crypto in 2021.
The crypto giant offers its clients an insurance plan. Binance Custody aims to complete its independent SOC 2 Type 2 examination to prove its operational security.
Binance relies on secure multi-party computation (MPC) for distributing control over clients’ funds. Its qualified wallet solution is used for secure storage.
Earlier this month, Binance Custody started offering support for Gala (GALA), Zilliqa (ZIL), WINkLink (WIN) and Immutable X (IMX).