Binance.US, the American arm of Binance, has improved its standards. From now on the Federal Deposit Insurance Corporation (FDIC) insures its US dollars deposits.
Based on reports, Binance.US keeps deposited U.S. dollars in pooled custodial accounts. Thereafter, they are placed in different banks that are insured by the FDIC.
The post said: “USD deposits are eligible for FDIC insurance coverage. Also, all USD deposits are held in pooled custodial accounts at multiple banks that are insured by the FDIC.”
Accordingly, the pooled custodial accounts are occasionally maintained. Although, the maintenance takes place in a manner that provides access to pass-through FDIC insurance coverage. Then, up to the depositor coverage limit, which currently lies at $250,000.
What to look out for
The initiative has positives around it as the FDIC insurance coverage protects depositors against the risk of loss. Thus, helping investors in a situation where an FDIC-insured bank fails.
In other words, the FDIC ensure deposit insurance for depositors in the U.S. depository institutions. The National Credit Union Administration also provides such and regulates and insures credit unions.
Additionally, Binance.US has taken key measures that reduce adoption hurdles. Also ensuring compliance with regulatory obligations proposed by the financial entities of the country.
In terms of trading fees, the exchange charges a flat fee of 0.10% per trade for personal accounts. But, for the purchase of $100 of BTC $0.10 will be charged.
Due to the trading launch, transactions attract zero fees until November 1, 2019.
Additionally, U.S. customers can purchase listed coins with USD through ACH or wire transfer methods. However, the exchange is considering adding other options as well.
Importantly, the platform noted that trades on Binance.US is separate from that on Binance.com. They said: “Yes. Binance.US operates as a separate company, led by BAM Trading Services. Binance.US wallets stores your digital assets.”
To remind, Binance’s token sale platform announced it’ll raise an initial exchange offering (IEO) for Kava Lab’s DeFi project. Also, Skew revealed Binance futures BTC trading volumes reached an all-time high.