Anchorage Digital and Binance Launch Off-Exchange Settlement For Institutional Crypto Trading
Anchorage Digital announced a merger with Binance to bring off-exchange settlement to institutional crypto traders, giving clients access to the world’s largest crypto exchange by volume without handing over their assets.
The partnership, sponsored by Atlas – Anchorage Digital Infrastructure for residential properties – marks the first implementation of a billing agreement within that platform. Under this arrangement, institutions can trade on Binance while their assets are in segregated storage at Anchorage Digital Bank, the first government-chartered crypto bank in the United States.
The structure reflects how institutional trading works in traditional financial markets, where custody and execution are kept separate. In those markets, assets are held with a custodian and transferred only at the point of final settlement – they do not stay on the balance sheet of the trading venue. Crypto has long lacked that distinction, requiring institutions to acquire exchange accounts in advance and accept counterparty exposure to the platform itself.
“Institutions need a crypto market structure that reflects the standards they have come to rely on in traditional finance,” said Nathan McCauley, founder and CEO of Anchorage Digital in a blog post. Bitcoin Magazine. “The Off-Exchange Settlement, sponsored by Atlas, is designed to separate storage and execution, helping institutions to access exchange funds while keeping assets in stock.”
The system also allows institutions to pledge both crypto-assets and USD accounts as collateral, allowing for remittances while satisfying trading margin requirements – a process that complements the workflow of traditional financial firms.
Binance has been building its institutional infrastructure over the past few years, tripling its banking and securities management offerings for professional clients. The Anchorage Digital merger expands that effort.
“Working with Anchorage Digital gives institutional clients another way to access Binance liquidity while managing storage and collateral through a model well-known in traditional financial markets,” said Catherine Chen, Head of VIP & Institutional at Binance.
Crypto acceptance and payment without exchange
Atlas is designed to support a variety of institutional workflows beyond over-the-counter payments, including trading, lending, securities management, and other capital markets activities.
Anchorage Digital says the stage is set for the current phase of institutional crypto adoption, where firms enter the market with compatibility, maintenance, and performance needs that previous crypto infrastructures were not designed to meet.
Anchorage Digital is backed by Andreessen Horowitz, Goldman Sachs, KKR, GIC, and Visa, and is valued at $4.2 billion.
In addition to Anchorage Digital Bank NA, the company operates Anchorage Digital Singapore, which is licensed by the Monetary Authority of Singapore, and Anchorage Digital NY, which holds a BitLicense from the New York Department of Finance.
