Binance Custody Ensures Institutional Compliance with TRM Labs Integration
October 20, 2022
TRM provides Binance Custody best-in-class compliance tools for wallet storage and transactions for institutions
SAN FRANCISCO, Calif.—October 20, 2022 - Binance Custody, an institutional-grade digital asset custody solution, has onboarded risk management tools from TRM Labs, the industry leader in blockchain analytics and intelligence technology. The integration enables Binance Custody to ensure its regulatory compliance and risk management program for client holdings through TRM’s full-service platform.
Despite increasing institutional interest in digital assets, concerns over security and custodial services remain a significant hurdle to broader institutional participation in the space. Binance Custody launched in December 2021 to address such concerns by offering top-grade security and integrated access to deep institutional liquidity venues with compliant, insured, and audited technology solutions. Since its inception, the company has already secured its specie insurance, ISO 27001 & ISO 27701 certifications and SOC 2 Type 1 attestation, and is currently pursuing its SOC 2 Type 2 attestation.
“As an institutional custodian, our utmost priority is to provide secure and compliant services that our clients can trust,” said Athena Yu, EVP of Binance Custody. “Utilizing TRM’s compliance and risk management solutions strengthens our suite of secure custody solutions to help clients safely participate in this rapidly growing digital economy.”
The relationship is the latest in a series of steps Binance Custody has taken to mitigate exposure to financial crime risk. Binance Custody uses TRM to screen for high-risk wallets, and monitor and investigate suspicious transactions. TRM’s best-in-class asset coverage, risk assessment, and forensics technology ensure that institutions are equipped to manage regulatory and reputational risk related to digital assets.
“As mainstream adoption of digital assets progresses, it is vital that institutions have compliance peace-of-mind when choosing partners such as custody service providers,” said TRM co-founder and CEO Esteban Castaño. “By incorporating TRM’s suite of compliance and risk mitigation tools, Binance Custody reinforces its ambition to deliver innovative services with trust and safety at the forefront.”
TRM’s full suite of tools to comply with AML/CFT regulatory requirements and manage exposure to risks such as sanctions, hacked or stolen funds and terrorist financing includes:
- Transaction Monitoring: Real-time risk scoring of cryptocurrency transactions for AML compliance, sometimes known as Know-Your-Transaction or KYT.
- Wallet Screening: Proactive screening of cryptocurrency addresses for sanctions and AML compliance.
- VASP Due Diligence: Comprehensive on-chain risk profiles of “Virtual Asset Service Providers” (VASPs) and other digital asset businesses.
- Forensics: Investigative tools to trace the source and destination of funds and link high-risk addresses to real-world entities.
About Binance Custody
Binance Custody is an independent, compliant, insured, and audited custody service launched in December 2021 to address the security, regulatory and operational challenges that institutional investors are facing within the digital asset space. It uses multi-party computation (MPC) technology with a customizable multi-approval scheme, offering bespoke solutions that allow institutions to manage their crypto assets safely and efficiently via the Binance Custody mobile app and web interfaces. Its seamless integration with the Binance ecosystem also provides an additional layer of deep liquidity venues and institutional services. To learn more, visit: www.binanceinstitutional.com
TRM provides blockchain intelligence to help financial institutions, cryptocurrency businesses and public agencies detect, investigate and manage crypto-related fraud and financial crime. TRM's risk management platform includes solutions for cryptocurrency anti-money laundering (AML), transaction monitoring and wallet screening, entity risk scoring including Know-Your-VASP, and transaction tracing for investigations. These tools enable a rapidly growing cohort of organizations around the world to safely embrace cryptocurrency-related transactions, products, and partnerships. TRM is based in San Francisco, CA and is hiring across engineering, product, sales, and data science. To learn more, visit www.trmlabs.com.
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