Binance Launches Service to Link Institutional Investors to Crypto Fund Managers
- Binance is working to expand its influence on the crypto market.
- Binance onboarded 8.3% more institutional clients in Q1 2023 than it did during the same period in 2022.
- Over 20 funds have been listed as of this writing.
Leading crypto exchange Binance has introduced a new service known as Capital Connect, which connects institutional investors with cryptocurrency investment fund managers. According to an official announcement, only Binance VIP-level users, which include family offices, high-net-worth individuals, hedge funds, and brokers.
Capital Connect, according to Binance, will assist institutional investors seeking exposure to the cryptocurrency market to do so in a secure and effective way. The platform will provide information on the assets under management (AUM) of various funds, their track records of efficiency, the minimum investment requirements, and other crucial details.
Users are required to apply for access to Capital Connect as an investor or investment manager to use the platform. Explaining the importance of the new service, Catherine Chen, Head of Binance VIP and Institutional, said in a press release,
Investors and fund managers continue to encounter network inefficiencies due to a lack of market standards. With Capital Connect, we can help create information disclosure standards for market participants with different investing and fund-raising needs.
Furthermore, Binance will not be involved in negotiations or dealings between investors and fund managers. However, the exchange plans to impose institutional Know-Your-Customer (KYC) and Know-Your-Business (KYB) standards on interested users, who must also meet the requirements for VIP level status. Interestingly, over 20 funds are listed as of this report, and Binance plans to expand the list in the coming months.
Binance is expanding its influence on the crypto industry, and Capital Connect reflects the exchange’s ambitions. The newly launched service solves existing problems such as a lack of accepted standards at the institutional level, information asymmetries, and network inefficiencies.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
