Binance, the world's largest cryptocurrency exchange, is reportedly considering a proposal to allow some institutional clients to keep their trading collateral at a bank instead of with the exchange. The proposal would enable clients to use bank deposits as collateral for margin trading in spot and derivatives. The exchange has reportedly spoken to some of its professional customers about the setup, with Swiss-based FlowBank and Lichtenstein-based Bank Frick mentioned as potential intermediaries. The move comes as crypto exchanges face increased scrutiny from regulators, with concerns raised about the commingling of various functions and potential risks for investors.