TRM Labs And Binance Custody Partner Up To Improve Institutional Compliance

TRM Labs, which is widely considered to be among the industry leaders in blockchain analytics and intelligence technology, has reportedly onboarded risk management tools for Binance Custody. The institutional-grade digital asset custody solution can now ensure risk management and regulatory compliance for client holdings via TRMs full-service platform thanks to the new integration.

TRMs comprehensive suite of tools for meeting AML and CFT regulatory requirements and managing risks like sanctions, stolen funds, and terrorist financing includes real-time transaction monitoring, wallet screening, forensics, and VASP due diligence.

Why does this matter?

Amid mounting institutional interest in digital assets, security concerns and issues related to custodial services continue to be a significant barrier in terms of broader institutional participation. Binance Custody, which launched in December 2021 to address such concerns, provides reliable security and integrated access to deep institutional liquidity venues through audited, insured, and compliant technology solutions.

Moreover, since its inception, the company has obtained ISO 27001 and ISO 27701 certifications along with SOC 2 Type 1 attestation, and is presently focusing its efforts on obtaining SOC 2 Type 2 attestation as well. This is important because as the crypto and blockchain sector continues to become increasingly popular, Binance would ideally want to maintain its position as the largest crypto exchange in the world which means that it must implement the best security measures to safeguard users at all times.

The top priority as an institutional custodian is to hence offer safe and compliant services which clients can regularly depend on, said Athena Yu, EVP of Binance Custody. Athena further stated that by using TRMs compliance and risk management solutions, Binance Custodys suite of custody solutions will be significantly enhanced which will allow clients to participate in this burgeoning digital economy in a safe and risk free manner.

What is next for Binance?

The aforementioned integration is the newest in a series of steps taken by Binance Custody to reduce its exposure to financial crime risk, especially after the recent hack. TRM is used by Binance Custody to monitor high-risk wallets and to oversee as well as examine fraudulent behavior. TRMs asset coverage, risk assessment, and forensics technology therefore equips institutions to handle regulatory and reputational risk associated with digital assets like cryptocurrencies.

As digital assets become more widely adopted, it is critical that institutions have the appropriate compliance measures put in place especially when selecting partners like custody service providers, said TRM CEO and Co-Founder, Esteban Castao. The CEO also claimed that by implementing TRMs compliance and risk mitigation tools, Binance Custody reaffirms its commitment to providing innovative services that prioritize safety and trust above all else.