The US focused crypto exchange underlined that the exchange retains the US dollar deposits in pooled custodial accounts at multiple FDIC insured banks.
FDIC is a US government owned institution structured to safeguard clients and the US financial system.
The US branch of Binance elaborated as follows:
“The pooled custodial accounts are maintained in a manner that provides access to pass-through FDIC insurance coverage up to the depositor coverage limit, which is currently $250,000. FDIC insurance coverage protects depositors against the risk of loss in the event that an FDIC-insured bank fails.”
Established in 1933, the FDIC guarantees stability of the US financial system and avoided the extensive closure of banks during the Great Depression. Back in May, SFOX, a prime crypto dealer serving institutions, began offering insured bank accounts to speculators. SFOX claimed that it was the first to offer such kind of accounts.
Notably, earlier today, Binance futures platform has increased the leverage and margin on Bitcoin BTC)/Tether (USDT) pair contracts to 125x. Changpeng Zhao, CEO of Binance, recently affirmed that the cryptocurrency exchange has started accepting fiat currencies via online payment processing service Alipay and mobile messaging and payment app WeChat.
Zhao clarified that Binance is not having direct contact with WeChat or Alipay, but users will be able to utilize those services for p2p transactions.