Banks Open Doors for Institutional Customers to Deposit Cryptocurrency Transaction Collateral

Cryptocurrency Considers Allowing Institutional Clients to Deposit Trading Collateral with Banks, Reducing Counterparty Risk.

According to sources familiar with the matter, cryptocurrency has engaged in discussions regarding a proposal that would enable certain institutional clients to utilize bank deposits as collateral for spot and derivatives margin transactions.

This potential move aims to mitigate counterparty risk. FlowBank based in Switzerland and Frick Bank based in Liechtenstein are being considered as potential intermediaries for this service.

 (Source: Bloomberg)