Binance.US is collaborating with crypto custody firm Fireblocks to improve the safety and compliance of customer assets while expanding its crypto-token staking services.
The partnership will leverage Fireblocks’ wallet technology to support hot and cold storage, as well as customer deposits and withdrawals. Fireblocks’ key management system will also improve staking services on Binance.US, which offers a wide range of staked tokens for a U.S.-based platform.
The Fireblocks network allows users to connect with major crypto and financial institutions without assuming counterparty risk. Over 400 participants are already active, including banks, OTCs, asset managers, liquidity providers, exchanges, lending desks, brokers, market makers, clearinghouses, and custodians.
Established in 2019, Binance.US has been under regulatory scrutiny, particularly following a sweeping enforcement action last year against Binance, its U.S. affiliate, and the exchange group’s founder, Changpeng Zhao, for securities law violations.
In March, the U.S. Securities and Exchange Commission (SEC) criticized Binance.US for not being fully transparent in providing information about customer assets, specifically regarding custody and control over private and administrative keys.
Binance.US has recently appointed Martin Grant, a former chief compliance and ethics officer at the Federal Reserve Bank of New York, following the resignation of founder Changpeng Zhao from his role as chair.
The exchange is currently engaged in a legal battle with the SEC, which escalated last year with allegations similar to those faced by other platforms such as Coinbase and Kraken. Binance.US CEO Norman Reed, formerly the exchange’s general counsel, remains optimistic about the outcome, criticizing the SEC for not providing clear guidance on which digital assets are considered securities.
“As regulators intensify their focus on security and compliance, it’s critical for platforms to employ technology that meets regulatory requirements without compromising user experience,” said Fireblocks CEO Michael Shaulov.
Shaulov added that by integrating Fireblocks’ wallet infrastructure, Binance.US aligns its custody operations with regulatory expectations, securely scale staking operations, and offer users a more seamless experience while staking tokens and earning rewards.
By tapping into Fireblocks’ technology, crypto service firms can elevate their custody services to an enterprise-grade level, ensuring security and governance standards. The integration also grants partners access to Fireblocks’ extensive network with direct connectivity to liquidity providers.
Additionally, Fireblocks provides a modular and scalable infrastructure that simplifies settlement processes, operational security, and reduces manual errors.
