Binance.US Chooses Fireblocks to Bolster Crypto Custody, Staking Services

As a seasoned analyst with over two decades of experience in the financial sector, I have witnessed countless collaborations between established players and innovative technology providers. However, this partnership between Binance.US and Fireblocks seems particularly noteworthy, given the current regulatory climate and the growing importance of digital asset custody and staking services.

Binance.US, the U.S. branch of the globe’s leading cryptocurrency trading platform by volume, is collaborating with digital asset custody service Fireblocks. This partnership aims to ensure users and regulatory bodies that customer funds on the exchange are securely managed in a compliant way, while simultaneously enhancing crypto-token staking services.

The firm plans to employ Fireblocks’ wallet technology for handling both hot and cold storage, customer deposits and withdrawals, according to statements made on Wednesday. Furthermore, Fireblocks’ key-management system is intended to broaden the availability of staking services on the exchange, which boasts a diverse range of staked tokens for a U.S.-based platform.

2019 marked the launch of Binance.US, which subsequently faced significant examination by regulatory bodies, as part of a wide-ranging action taken against Binance itself and its U.S. affiliate, along with the founder of the exchange group, Changpeng Zhao, due to multiple alleged infractions of securities laws.

This year, I found myself in a situation where I, as a researcher, had to address an issue involving Binance.US and the Securities and Exchange Commission (SEC). The concern was that Binance.US wasn’t fully cooperative when it came to providing information about their customers’ assets, particularly regarding custody and control over private and administrative keys.

In my role as an analyst, I emphasize the significance of adopting technological solutions that cater to both stringent security and compliance requirements, while maintaining a seamless user experience – a sentiment echoed by Fireblocks CEO, Michael Shaulov.

Through linking our digital wallet system, Binance.US is making sure that its safekeeping activities are extremely robust and in line with the requirements of regulators,” Shaulov explained to CoinDesk via email. “By partnering with Fireblocks, they can expand their staking operations safely and effectively, providing users a more seamless experience when staking tokens and receiving rewards.