Fireblocks’ tech will help Binance.US scale up staking services for its relatively long list of staked crypto tokens.
Earlier this year, the SEC told Binance.US to be more forthcoming in answering requests for information, specifically mentioning custody of customers’ assets.
Binance.US, the American arm of the world’s largest cryptocurrency exchange by trading volume, is working with crypto custody firm Fireblocks to reassure users and regulators that customer assets on the exchange are handled in a safe and compliant manner while also bolstering crypto-token staking services.
The company will use Fireblocks wallet tech to power hot and cold custody, customer deposits and withdrawals, the companies said on Wednesday. Fireblocks’ key-management system will also help expand staking services on the exchange, which has a relatively large selection of staked tokens for a U.S.-based platform.
Established in 2019, Binance.US became the subject of intense scrutiny by regulators as part of a sweeping enforcement action last year against Binance itself, the U.S. affiliate and the founder of the exchange group, Changpeng Zhao, citing a variety of securities law violations.
In March of this year, the Securities and Exchange Commission (SEC), complained that Binance.US was not being entirely forthcoming in complying with requests for information about its customers’ assets, with specific mention of custody and control over private and administrative keys.
As regulators put more focus on security and compliance, it’s crucial for platforms to use technology that can check all boxes without sacrificing user experience, Fireblocks CEO Michael Shaulov said.
“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 told CoinDesk in an email. “With Fireblocks, they can scale up staking operations securely and efficiently, giving users a smoother experience while staking their tokens and earning rewards.”