[image credit : Binance Cloud]
Binance is set to develop white-label crypto exchange infrastructure for use by smaller exchanges, allowing them to focus on regulatory compliance.
Binance’s cloud service was already hinted at by the exchange’s CEO, Changpeng “CZ” Zhao, during an “ask me anything” session on Feb. 8. Their white-label exchange infrastructure will provide spot market and futures trading, bank API integrations, and fiat-to-cryptocurrency exchange services.
Exchanges will be able to rebrand the software infrastructure, to be hosted on Binance Cloud, to suit the needs of their local markets. A statement from the company explained, “The Binance Cloud service is an all-in-one solution, featuring an easy-to-use dashboard that allows customers to manage funds, trading pairs and coin listings, as well as multilingual support, depth-sharing with the Binance.com global exchange, and more opportunities to collaborate with the ecosystem.”
White-label crypto exchange infrastructure is not new to the industry. The current market leader is AlphaPoint, which claims to provide infrastructure to “over 100 exchange operators.”
Binance’s entry into the white-label market appears to be in line with the giant’s determination to redefine money and expand cryptocurrency access and services to a worldwide audience.
With Binance-powered matching engines, security, and liquidity solutions, new exchanges would be able to access instant workability and scalability. Startup exchanges have historically faced daunting setup costs, with many failing to gain significant market traction.