Crypto custody platform Trustology has extended its services to Binance Chain and plans to offer custodial trading through Binance’s non-custodial exchange, Binance DEX.
How exactly can custodial trading happen on a non-custodial exchange like DEX? Binance recently announced plans to build a “smart chain” running parallel to the existing Binance Chain. In more physical terms, imagine using multiple modes of transport such as an automobile and an airplane, for example, to get from point A to point B.
According to Trustology, this unlikely matchup may, in fact, encourage the creation of decentralized applications and an indication the Binance network is “likely to pursue the fast-growing DeFi ecosystem.”
The platform said the move would allow users to make transactions with the Binance Coin (BNB) and all third-party cryptocurrencies with full custody over their assets.
Trustology Chief Executive Officer (CEO) Alex Batlin said:
With the value locked in crypto DeFi markets hitting the $1 billion milestone earlier this year, a quarter of what it was worth a year ago, the market is poised for continuous growth. Binance developing their own DeFi ecosystem is an obvious win for the Binance Smart Chain, and for us as custodians as we’re always striving to offer our clients as many opportunities as possible to maximise earning potential in the financial markets.
Batlin has been very vocal about his excitement over DeFi. Speaking to Cointelegraph in April, the CEO said when DeFi starts working, “it potentially could be one of the most trusted liquidity pools because it is decentralized, therefore much more global.”
However, Batlin believes platforms supporting decentralized finance need greater scalability in order to facilitate the mainstream adoption of DeFi protocols. The CEO has said Ethereum 2.0 is “getting there.” Currently, only 28 wallets, mostly non-custodial, support Binance Chain.
One of the reasons a lot of custodians don’t support Binance chain and the DEXs, is because they have a different architecture which poses a number of challenges, especially when it comes to signing transactions. Our unique re-signing technology has enabled us to quickly support Binance Chain in a custodial way, and as and when Binance Smart Chain comes on board we’ll be able to support any application or new asset type created on top of that like we do with Ethereum.
There is an opportunity for custodians like Trustology to benefit from the expansion of the DeFi ecosystem. For instance, big-four accounting firm KPMG reported in March that more than $9.8 billion in cryptocurrency has been stolen by hackers since 2017, revealing a greater need for institutional custody.