The global crypto exchange Binance launched a new service called “Binance Wealth” designed to assist wealth managers with a technical tool to administer the portfolios of their high-net-worth clients.
This new platform will provide the required infrastructure needed to deliver tailored financial advisory services to customers seeking to gain exposure to the crypto market with the assistance of a professional.
Through Wealth, Binance aims to bridge the gap between traditional finance and the nascent digital asset space and reduce the entry barriers that market participants often face when they try to add cryptocurrencies to their portfolios.
Staking and Savings Products Will Be Available Via Binance Wealth
Financial experts and crypto professionals from within the Binance team came together to create Wealth. The platform offers various features that distinguish it from conventional trading platforms:
First, it offers asset managers an environment that they are familiar with when they provide their conventional financial advisory services. The software includes dashboards, portfolio management tools, and CRM features.
Moreover, the number of products supported by Binance Wealth extends beyond Bitcoin (BTC) and Ether (ETH) to include a wider range of crypto tokens from various corners of the Web3 space. It also provides asset managers access to staking and savings products to help them offer both passively and actively managed alternatives to clients.
In addition, wealth managers have access to VIP attention from a group of Binance account managers who will troubleshoot any issue that may appear during their experience with this new platform. Binance aims to provide asset managers with a premium experience and dedicated support to facilitate the adoption of the platform.
KYC and KYB Compliance Will Be Mandatory for Customers and Wealth Managers
The onboarding process for Binance Wealth follows a structured approach to ensure security and compliance.
Wealth managers must first apply and receive approval to access the service. Once approved, they can start their clients’ onboarding process by submitting the necessary Know Your Customer (KYC) and Know Your Business (KYB) documentation for verification.
Wealth managers can create sub-accounts for their clients to keep track of their investments and portfolio performance.
Clients retain full discretionary control over their investments while benefiting from their wealth managers’ recommendations and support.
This structure maintains the critical balance between professional guidance and client autonomy, similar to traditional wealth management relationships.
Binance Wealth Will Not Be Available in the US
Binance Wealth’s initial rollout will be focused primarily on Asia and Latin America. It is worth noting that the service will not be available in certain key jurisdictions, including the United States. The service operates through the global Binance.com platform. This means that it must comply with the regulatory restrictions imposed on this firm in certain locations.
In regards to this new service, Catherine Chen, Head of Binance VIP & Institutional, commented: “Wealth managers can help onboard and support their clients who are eligible to use Binance.com – residing in jurisdictions where Binance.com is available.”
Binance Wealth is also available to accredited and licensed wealth managers who are authorized to provide these services in their respective jurisdictions.
No Additional Fees Will Be Charged to Access the Service
To ensure that customers’ assets are well protected, Binance will allocate customers’ funds in segregated accounts and they will retain full visibility via the Binance’s Proof of Reserves Page.
The crypto exchange aims to provide a high degree of transparency with this move to overcome the usual objections that high-net-worth customers may have regarding the safety of the platform.
The platform will charge its standard trading fee structure. No special discounts are being offered to wealth managers or customers at the time although eligible users who qualify for the VIP Program may receive fee rebates.
The launch of Binance Wealth represents a positive step to incentivize the institutional adoption of cryptocurrencies as a financial asset.
As Binance’s Chen explains: “Unlocking capital inflow is key to making digital assets mainstream but there has long been a lack of traditional infrastructure for the private wealth segment to gain exposure to crypto. Binance Wealth will reduce the entry barrier for more market participants to access this new asset class and help bridge crypto and traditional finance.”
This service launch builds upon Binance’s earlier innovations, including its banking triparty solution, which helps institutional investors mitigate counterparty risk by holding their trading collateral in traditional assets with partner banks.
Binance Wealth also emphasizes the exchange’s commitment to advancing the institutional adoption of crypto assets and bridging the gap between traditional and digital finance.
The timing of this launch is significant as it occurred just months after the introduction of Bitcoin and Ethereum-linked spot exchange-traded funds (ETFs) in the United States following the Securities and Exchange Commission (SEC) approval of these vehicles.