Binance has entered the white-label crypto services market, following in the footsteps of Coinbase, by launching its "Crypto-as-a-Service" (CaaS) solution for traditional finance (TradFi) institutions. This move allows licensed banks, brokerages, and stock exchanges to offer crypto services to their clients without needing to develop their own infrastructure from the ground up. Binance's CaaS provides access to its spot and futures markets, liquidity pools, custody solutions, and compliance tools.
What is Crypto-as-a-Service?
CaaS is a white-label solution that enables financial institutions to integrate cryptocurrency functionalities into their platforms. It allows these institutions to offer crypto trading services while leveraging the infrastructure of established crypto exchanges like Binance. The institutions retain control over their front-end user experience, brand, and client relationships, while Binance manages the back-end operations, including trading, liquidity, custody, compliance, and settlement.
Benefits of CaaS
- Reduced Costs and Complexity: Building a crypto trading infrastructure in-house can be expensive, time-consuming, and potentially high-risk. CaaS offers a faster and more cost-effective way for TradFi institutions to enter the crypto market.
- Access to Liquidity and Markets: CaaS provides access to deep liquidity and a wide range of trading pairs. Binance's CaaS, for example, offers full Spot and Futures depth as a standard feature.
- Compliance and Security: CaaS solutions come with built-in compliance and security features, helping institutions meet regulatory requirements. Binance's CaaS includes asset segregation, unique deposit addresses, and settlement tools, along with APIs for KYC and transaction monitoring.
- Internalized Trading: Binance's CaaS offers internalized trading, allowing institutions to match orders directly between their own clients. This enables institutions to capture internal activity, retain liquidity, and reduce costs while maintaining access to Binance's order book.
- Client Management: CaaS includes features, such as an intuitive management dashboard, that allow institutions to segment clients, apply tailored fee markups, and craft personalized trading experiences.
Binance vs. Coinbase
Binance and Coinbase are the two major players offering CaaS solutions to TradFi institutions. Both platforms provide access to crypto trading, custody, and compliance services. Coinbase has been offering its institutional services for a longer period and has established itself as a trusted bridge to crypto markets for institutions. Binance, with its larger global presence and wider range of products, is now offering a competing solution.
Institutional Adoption of Crypto
The launch of CaaS solutions by Binance and Coinbase reflects the increasing institutional interest in digital assets. Many financial institutions are looking for ways to offer crypto exposure to their clients while managing regulatory and operational risks. A report by Coinbase Institutional indicated that 75% of institutional investors plan to increase their crypto exposure in 2025. This trend is driven by factors such as increasing regulatory clarity, technological advancements, and the availability of institutional-grade solutions for custody and trading.
Looking Ahead
Binance's CaaS is expected to roll out in phases, with early access beginning in late September 2025 for selected institutions. A broader rollout is planned for later in the fourth quarter of 2025. The entry of Binance into the CaaS market is likely to intensify competition and drive further innovation in institutional crypto services. As more TradFi institutions adopt crypto, the demand for CaaS solutions is expected to grow, creating new opportunities for both Binance and Coinbase.
