Binance.US, the American arm of the world's largest cryptocurrency exchange, has partnered with crypto custody firm Fireblocks to strengthen its custody and staking services. The exchange will leverage Fireblocks' wallet technology to power hot and cold custody, customer deposits and withdrawals, as well as expand its staking offerings.
The move comes as Binance.US faces increased scrutiny from regulators, with the Securities and Exchange Commission (SEC) raising concerns about the exchange's transparency regarding customer asset management and custody. By integrating Fireblocks' infrastructure, Binance.US aims to reassure users and regulators that customer assets are handled securely and compliantly.
Fireblocks' key-management system will also help Binance.US expand its staking services, which offer a relatively large selection of staked tokens compared to other U.S.-based platforms. Staking has been a major liquidity sink for Ethereum, according to Coinbase Institutional.
"By integrating our wallet infrastructure, Binance.US is ensuring its custody operations are rock solid and fully aligned with what regulators are asking for," said Fireblocks CEO Michael Shaulov. "With Fireblocks, they can scale up staking operations securely and efficiently, giving users a smoother experience while staking their tokens and earning rewards."
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