Binance.US, the American branch of the world’s largest cryptocurrency exchange, has teamed up with crypto custody firm Fireblocks to enhance the security of customer assets and meet regulatory expectations. This partnership aims to reassure both users and regulators about the safety and compliance of Binance.US’s operations, while also improving the platform’s crypto-token staking services.
Announced on Wednesday, the collaboration will see Fireblocks’ wallet technology power key aspects of Binance.US’s operations, including custody, customer deposits, and withdrawals. Additionally, Fireblocks’ key-management system will support the expansion of staking services, a feature for which Binance.US offers a relatively broad selection compared to other U.S.-based exchanges.
Founded in 2019, Binance.US has faced increasing regulatory scrutiny, particularly after a major enforcement action last year that targeted Binance, its U.S. affiliate, and founder Changpeng Zhao for alleged violations of securities laws. In March 2024, the U.S. Securities and Exchange Commission (SEC) raised concerns that Binance.US had not fully complied with requests for information regarding its customers’ assets, specifically in relation to custody and control of private and administrative keys.
With regulatory pressure mounting, platforms like Binance.US are being pushed to prioritize security and compliance without compromising user experience. Fireblocks CEO Michael Shaulov emphasized the importance of integrating cutting-edge technology to meet these challenges.
“By integrating our wallet infrastructure, Binance.US is ensuring its custody operations are rock solid and fully aligned with what regulators are asking for,” Shaulov said in an email to CoinDesk. “With Fireblocks, they can scale up staking operations securely and efficiently, giving users a smoother experience while staking their tokens and earning rewards.”
This move reflects Binance.US’s ongoing efforts to align with regulatory demands while maintaining a robust service for its users in the evolving crypto landscape.
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