Main Takeaways
Banking Triparty is a custody solution for institutions that keeps fiat and TradFi collateral in a regulated third-party bank while they trade on Binance.
The latest version offers lower entry thresholds, no volume commitment, and — until the end of 2025 — zero service fees on pledged funds.
Built to mirror TradFi standards, Triparty gives institutions full control, reduced counterparty risk, and seamless onboarding from Binance’s dedicated team.
This is a general announcement. Products and services referred to here may not be available in your region.
In November 2023, Binance became the first crypto exchange in the world to pilot a Banking Triparty arrangement — a custody solution designed to help institutions manage counterparty risk by holding their trading collateral off-exchange with a regulated third-party bank, while maintaining the ability to trade on Binance.
Since then, the product has quietly matured. It’s now a live, fully operational solution used by institutional clients who value greater transparency, control, and risk mitigation. Today, we’re making it more accessible than ever. With lower minimums, improved infrastructure, and zero service fees on pledged funds until the end of 2025.
In this blog, we’ll explore how Binance Banking Triparty works, and why more institutions are adopting this model as a smarter way to manage their crypto exposure.
What Is Banking Triparty, and Why It Matters
Banking Triparty is a high-trust custody framework built for institutions. It allows clients to hold more traditional collateral — such as fiat currency and Treasury Bills — off-exchange, in their own corporate account, at a regulated third-party bank. While these assets remain securely parked with the banking partner, clients receive on-exchange credit that enables them to trade on Binance without moving collateral.
Because the collateral remains in the client’s own account at the partner bank, institutions can continue earning yield on eligible assets while accessing liquidity on Binance. This allows clients to maintain a capital-efficient strategy without sacrificing potential returns.
This structure also significantly reduces counterparty risk and mirrors a setup long used in traditional financial markets. By separating custody from execution, institutions can better align their crypto activity with internal risk mandates, operational policies, and regulatory expectations. There’s no need to pool assets, and no loss of control.
For institutions seeking secure, capital-efficient exposure to crypto, Banking Triparty offers a model that combines TradFi-grade custody with Binance-grade liquidity.
What’s New: Built to Scale With Institutional Demand
Since the original pilot, Banking Triparty has evolved into a more accessible, efficient, and scalable solution, with key enhancements designed to meet the needs of a broader range of institutional clients. Most notably, Binance is waiving all service fees on pledged funds until December 31, 2025, offering a cost-effective entry point for institutions looking to trial or expand their use of the product.
The latest version also lowers the barriers to entry, with a reduced minimum investment size and no volume commitment required. This makes the solution suitable for a broader range of institutional clients, including asset managers, hedge funds, and other firms that may not have qualified under the pilot. Behind the scenes, we’ve refined the product infrastructure to make it more capital-efficient, allowing you to scale without placing strain on your cost strategy. This upgrade enables us to support more clients at a lower cost, without compromising security or performance.
Finally, we’ve grown our network of regulated banking partners, offering clients greater flexibility when selecting a partner bank that aligns with their operational and regulatory requirements. More options means more control, and more confidence.
Why Institutions Are Choosing Triparty
Binance Banking Triparty is designed to give institutions the level of control, transparency, and operational assurance they expect when allocating capital at scale. Client assets are held in individual bank accounts — not pooled, not trust-based — providing full legal ownership and visibility.
This structure supports alignment with internal governance policies and regulatory expectations, making it a strong fit for compliance-conscious institutions. Whether navigating internal audits or external scrutiny, clients can point to a custody setup that mirrors traditional financial practices.
Binance also offers hands-on onboarding and ongoing support, helping clients integrate Banking Triparty smoothly into their trading operations. From initial setup and coordination with banking partners to account management, our team works closely with each client to ensure a seamless experience at every stage.
From hedge funds and asset managers to family offices and beyond, institutions are choosing Binance Banking Triparty solution as a smarter way to manage their crypto exposure — without compromising security or control.
Take Advantage of the 0% Fee Campaign
To support broader institutional access, Binance is currently waiving all service fees on pledged funds for Banking Triparty clients — a significant reduction from the previous fee structure, and a clear signal of our commitment to making secure, off-exchange custody more accessible to institutions of all sizes.
This 0% fee campaign runs until December 31, 2025, offering a limited-time opportunity for institutions to explore the product with minimal friction and no platform costs on pledged funds. From 2026, a new tiered pricing model will apply, with lower rates designed to reflect the improved cost efficiency and support long-term adoption as the product scales.
If you’re interested in learning more or would like to assess your eligibility, please reach out to your dedicated Account Manager. If you are not yet a Binance VIP or Institutional client, please connect with our team through this form.
Final Thoughts
As institutions deepen their engagement with digital assets, the need for infrastructure that reflects the safeguards of traditional finance has never been more urgent. Banking Triparty delivers exactly that, combining off-exchange custody, on-exchange flexibility, and access to Binance’s global liquidity within a single, institution-ready solution.
This is not just a pilot or a proof of concept. With real clients actively using the model, and an expanded partner bank network supporting it, Banking Triparty is fast becoming the new normal for managing crypto exposure with clarity, control, and confidence.
For institutions looking to enter the market — or expand their footprint — while meeting internal governance requirements and reducing operational risk, Banking Triparty offers a clear path forward.