Binance Launches Fund Accounts for Asset Managers
On April 24, the renowned exchange Binance announced the launch of its Fund Accounts service, specifically designed for asset managers, aiming to integrate traditional portfolio management functions commonly found in traditional finance (TradFi) into the cryptocurrency market.
Binance Moves Toward Traditional Finance with Fund Accounts for Asset Managers
Binance stated that Fund Accounts can:
- Integrate funds raised from external sources
- Centralize client asset management
The purpose of bringing this mechanism into the cryptocurrency market is to allow asset managers to effectively simplify trading processes, unify asset management, and reduce operational complexity through one or more omnibus accounts. The operational logic of omnibus accounts is:
- Managed by a single custodian
- Responsible for executing all investors’ trades
- Helping fund managers efficiently place orders and clear transactions
This service is limited to qualified asset managers who must pass KYC/KYB verification. Currently, the service is only open to qualified asset managers, and those wishing to apply must consult Binance’s VIP client representatives. It is emphasized that they must pass:
- KYC
- KYB
Additionally, they must possess a license or exemption conditions within their jurisdiction to be eligible for this product.
Institutional Tools Continue to Enter as Crypto Market Merges with TradFi
Recently, with the listing of cryptocurrency ETFs for Bitcoin, Ethereum, and the rise of real asset tokenization (RWA Tokenization), as well as the allure of on-chain lending rewards, an increasing amount of traditional institutional capital is accelerating its entry into the market.
Not only Binance, but the entire industry is embracing this wave of institutionalization. On the same day, April 24, on-chain trading infrastructure startup Theo also announced the completion of a $20 million fundraising round, aiming to expand its institutional-grade trading platform to serve more users.
This round of funding includes 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 launch professional tools aimed at institutions and asset managers, the ecosystem of the cryptocurrency industry is no longer just retail investors trading coins. In the future, products like Fund Accounts may serve as a bridge to attract traditional asset management companies into the on-chain world, moving the “institutionalization of the crypto market” from a slogan to practice.
Risk Disclaimer
Investing in cryptocurrencies involves a high risk, with prices potentially experiencing significant volatility. You may lose all of your principal. Please carefully assess the risks.