Binance Advances into Institutional Asset Management: The Wave of Traditional Finance Merging with the Cryptocurrency Market
Binance Launches Fund Accounts Service for Asset Managers
Renowned exchange Binance announced on April 24 the launch of its Fund Accounts service, designed specifically for asset managers, attempting to integrate the portfolio management features commonly found in traditional finance (TradFi) into the cryptocurrency market.
Binance Moves Towards Traditional Finance with Fund Accounts for Asset Managers
Binance stated that Fund Accounts can:
- Integrate funds raised from external sources
- Consolidate the management of client assets
This mechanism brought into the cryptocurrency market aims to allow asset managers to simplify trading processes, unify asset management, and reduce operational difficulties through one or multiple omnibus accounts. The operation logic of the omnibus accounts is as follows:
- Managed by a single custodian
- Executes all trades on behalf of investors
- Helps fund managers place orders and settle efficiently
Usage is limited to qualified asset managers who must pass KYC/KYB authentication. Currently, this service is only available to eligible asset managers. To apply, one must consult with Binance’s VIP client representatives. It is emphasized that applicants must pass:
- KYC
- KYB
Moreover, they must possess a license or meet exemption conditions in their jurisdiction to qualify for this product.
Institutional Tools Continue to Enter the Market, Merging Crypto and TradFi
Recently, with the listing of cryptocurrency ETFs for Bitcoin and Ethereum, the rise of real asset tokenization (RWA Tokenization), and the attractiveness of on-chain lending rewards, an increasing amount of traditional institutional capital is entering the market at an accelerated pace.
Not only Binance but the entire industry is welcoming this wave of institutionalization. On the same day, April 24, the on-chain trading infrastructure startup Theo also announced the completion of a $20 million fundraising round, planning to expand its institutional-grade trading platform to serve more users.
This round of funding included participation from Wall Street institutions such as JP Morgan, Jane Street, and Citadel.
From VIP Clients to Asset Managers, the Crypto Market Faces a New Wave
As platforms like Binance continue to roll out professional tools for institutions and asset managers, the ecosystem of the crypto industry is no longer just about retail investors trading cryptocurrencies. In the future, products like Fund Accounts may become a bridge to attract traditional asset management companies into the on-chain world, moving the “institutionalization of the crypto market” from a slogan to reality.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and their prices can be highly volatile. You may lose all your principal. Please carefully assess the risks.
