Binance Recognizes USYC as Collateral
Binance is set to begin recognizing USYC, a yield-sharing stablecoin from Circle, as acceptable collateral for its institutional clients, according to a report by Fortune.
Institutional Caution and Strategic Moves
Despite a trend where many institutional traders favor utilizing cryptocurrencies like Bitcoin for collateral on exchanges, a significant number of traditional financial institutions remain cautious. Catherine Chen, who oversees Binance’s VIP and Institutional Business, attributed this hesitance to the unsettling recent events surrounding the collapse of FTX, which has resulted in heightened wariness about trading on exchanges.
In a strategic move to mitigate these concerns, Binance is launching a new service dubbed “Banking Triparty”. This initiative involves collaborating with established banks that will act as custodians for the collateral assets, allowing these banks to back cryptocurrency trading.
Future Plans and New Offerings
Chen noted that numerous partners are already in discussions to integrate USYC, which promises to expedite settlement processes. In addition to USYC, Binance revealed plans to introduce cUSDO, another yield-generating stablecoin. cUSDO, which represents the OpenEden OpenDollar, is governed by a Bermuda-licensed organization, OpenEden Digital.
