Binance mulls plan to let traders hold collateral in a bank: Bloomberg

Binance could move forward with a plan to let select traders hold their collateral funds in a bank, Bloomberg reports.

Bloomberg's Justina Lee and Anna Irrera reported that the plan, which hasn't yet been finalized, would involve storing such funds in a bank rather than on Binance itself.

One possible arrangement, per Bloomberg, would involve locking up those funds while Binance lends the clients stablecoins that would then serve as collateral for trading in both spot and derivatives markets.

Sources told Bloomberg that two banks — Europe-based Bank Frick and FlowBank — had been floated in conversations about the prospective plan.