Cryptocurrency exchange Binance has introduced a new fund management solution designed to simplify asset management for portfolio managers, highlighting the growing sophistication of institutional tools in the digital asset space.
On April 24, Binance launched Fund Accounts, a tool commonly used by traditional asset managers and brokerage firms to consolidate client assets and streamline portfolio management.
Binance said Fund Accounts allow portfolio managers to “consolidate externally-raised investor assets into one or multiple omnibus accounts,” which can reduce operational complexity and enable more efficient trading execution.
Presumably, these omnibus accounts operate under a single custodian who executes trades on behalf of their clients.
The new program is only available to eligible fund managers who must contact their Binance VIP representative for more information.
A Binance spokesperson informed Cointelegraph that fund managers and their investors must pass Know Your Customer and Know Your Business requirements and be licensed or exempted in their jurisdictions to use the Fund Accounts product.
Binance is the world’s largest crypto exchange by trading volume, according to CoinMarketCap data. In December, the exchange updated the requirements for its VIP program, which is geared toward institutional investors and private clients.
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TradFi and crypto continue to merge
Binance’s Fund Accounts is another example of traditional finance solutions merging with cryptocurrency, signaling growing institutional involvement.
After spending the first decade of crypto largely on the sidelines, institutional investors are now entering the space, driven by the launch of Bitcoin exchange-traded funds (ETFs), the rise of real-world asset tokenization, and attractive yield opportunities in onchain lending.
Blockchain companies are also working to bring institutional trading solutions to crypto-native users.
On April 24, onchain trading infrastructure provider Theo announced it had raised $20 million to expand its institutional-grade trading platform aimed at serving retail investors. Seventeen investors participated in the funding round, including angel investors from Jane Street, JPMorgan and Citadel.
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