Binance Signs MoU With CapBridge For Future Collaboration
Binance intends to partner with a leading private markets platform in order to strengthen its local compliance in Singapore.
Memorandum of Understanding
Binance, the world’s largest cryptocurrency exchange by volume, revealed it has signed a Memorandum of Understanding (MoU) to build a strategic partnership with Singapore-based CapBridge Financial.
According to the top exchange, the potential collaboration will allow them to better comply with local regulations in the region. This will allow them to provide more services to users based in Singapore.
“By joining forces with CapBridge, Binance will be able to work with a fully licensed firm to broaden services securing compliance with local regulations”Changpeng Zhao – Chief Executive Officer – Binance
CapBridge Financial is regulated online platform for private markets in the traditional finance space. It comes under the oversight of the Monetary Authority of Singapore (MAS) which regulates all financial companies in the country.
The platform has two main areas, and investment service and a private exchange service. Both are also independently regulated by the MAS.
CZ Universe Expands
With another future collaboration in sight, the Changpeng Zhao’s (CZ) universe is preparing to expand further.
This year, they launched a payments application called Binance Pay which aims to rival payments giant PayPal. The app will allow its users to send fiat or cryptocurrency anywhere in the world.
Indeed, this app compliments another popular Binance product, Binance Card. This card allows users to spend their cryptocurrencies at thousands of merchants around the world, directly from their wallets
Binance is also making moves in the DeFi space. Binance Smart Chain (BSC) is the exchange’s platform for decentralized projects. Several decentralized exchanges (DEXs), including PancakeSwap (CAKE), recently moved over to the platform from Ethereum (ETH), citing lower transaction costs.
Indeed, analysis in January revealed that BSC-based DEXs were 49 times cheaper to run in 2020 than ETH-based DEXs.
Exchanges Chase Demand
Binance, like other exchanges, is on a mission not just to keep competitive, but to keep up with the soaring demand for cryptocurrency services.
This demand comes from the surge in the value of cryptocurrencies all-round, driven in large by the increased interest from institutions.
Grayscale Investments – a cryptocurrency investment manager – runs many trusts that allow mainstream investors to gain exposure to the market with minimized risk.
The company has seen the Assets Under Management (AUM) for its crypto-related products double since January. Grayscale now manages over $42 billion worth of cryptocurrencies on its clients’ behalf.
Retail investors have seemingly taken this as a sign of approval, heading to cryptocurrency exchanges to get in on the action.
If this demand continues to grow, expect more from Binance and other cryptocurrency exchnages in regard to expansion.
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