Anchorage, Binance Launch Off-Exchange Settlement for Institutions

Anchorage Digital has connected its off-exchange settlement system to Binance, letting institutional clients trade on the exchange while their crypto stays in Anchorage's custody. The setup separates the trading venue from the asset-holding layer, mirroring a standard Wall Street workflow where a prime broker executes trades on an exchange but the custodian holds the collateral. Binance sees the client's orders but never takes possession of the funds.

The integration addresses a persistent worry among asset managers after the FTX collapse. Institutions have been reluctant to leave assets on exchange balance sheets. Anchorage is a federally chartered bank supervised by the Office of the Comptroller of the Currency, giving clients a regulated counterparty for custody. The arrangement reduces the need to move coins into Binance's hot wallets. Trades settle off-chain between Anchorage and the exchange, limiting exposure if the exchange is compromised.

Anchorage launched the Off-Exchange Settlement product earlier this year. The Binance link extends it to the largest crypto venue by volume. The companies did not say which clients have access or what fees apply. The integration is live for eligible institutional clients, Anchorage said.

The move is the latest example of crypto market infrastructure adapting to institutional demand. Several custodians, including Fidelity Digital Assets, already offer execution-and-custody bundles. The Anchorage-Binance arrangement is among the first to pair a U.S. regulated bank custodian with an offshore exchange that serves a global client base.

Anchorage plans to add more exchanges. No timeline was given.