Binance is rolling out a new platform that seeks to connect institutional investors with crypto investment fund managers.
At launch, the new platform, dubbed ‘Capital Connect,’ will be available to Binance VIP-level users including asset and fund managers, brokers, hedge funds, family offices and high net-worth individuals, liquidity providers, and corporations.
Binance’s Free Service for VIP Clients
According to the official blog post, the service will be free for all existing Binance VIP clients in non-restricted regions. This essentially means that the crypto exchange will not charge any fee or commission. Binance VIP-level users who have completed the verification process may apply for access to the platform as either an Investor or an Investment Manager, or both.
As an Investor, users will be able to browse various funds and diversify their portfolio allocations. They can also pick Investment Managers based on strategies, redemption terms, fees, assets under management (AUM), and Sharpe Ratios.
Investors are the only ones who can initiate connection requests, following which Investment Managers can scan through the investors’ profiles before accepting a connection. Investment Managers are required to provide records of monthly returns verified by reputable fund administrators. This data can assist investors in referencing a fund’s past performance.
Binance, on the other hand, will not be involved in any discussions between parties after a successful connection has been established. The crypto exchange also said it will not guarantee any investment returns.
“With Capital Connect, one of our goals has been to provide a new way for Investors and Investment Managers to connect. We hope this will also demonstrate our commitment to supporting the growth and adoption of digital assets.”
FUD and Expansion
The latest offering comes amidst Binance facing massive pressure on the US regulatory front.
Pouring money and resources into global compliance over the past year has helped Binance win approvals across several jurisdictions in Europe, such as France, Italy, Lithuania, Spain, Cyprus, and Poland.
The CZ-led company is also planning to reenter the Japanese market after June this year via its acquisition of regulated crypto exchange Sakura Exchange BitCoin.
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