- Binance has launched ‘Capital Connect’ in order to connect institutional investors and cryptocurrency fund managers.
- Capital Connect won’t be subject to any commissions or fees from Binance.
Binance has recently introduced a new service platform known as Capital Connect, catering specifically to its VIP users. This platform aims to facilitate connections between these privileged users and professional investment fund managers.
Capital Connect is designed to establish a link between the eligible users and asset managers, allowing them to interact and explore potential investment opportunities.
The platform sets high standards for transparency and disclosure, ensuring that market participants handling substantial amounts of capital adhere to these guidelines.
As part of this initiative, investors will have access to comprehensive fund information, including details such as assets under management, performance records, and minimum investment requirements.
By providing such information, Binance enables users to make informed decisions and potentially initiate communication with the selected fund managers.
Binance has launched Capital Connect shortly after temporarily suspending Bitcoin withdrawals due to a significant backlog of pending withdrawal requests. The introduction of the new platform aims to address this issue by establishing information standards and streamlining processes through a unified platform.
Additionally, investment managers who have successfully completed Binance’s know-your-business (KYB) verification process can also access the service, fostering connections between investors and asset managers.
According to the business, the platform would make it possible for institutional investors looking for exposure in the cryptocurrency market to do so in a secure and effective way. It will include details on the assets under management (AUM) of various funds, their track records of performance, the bare minimum investment requirements, and other crucial details. Investors can make contact if they are interested.
According to Catherine Chen, head of Binance VIP, there will be no cost or commission charged by Binance for delivering the Capital Connect platform, but the company will ultimately profit from it. “Typically, where do these investment managers trade? They undoubtedly trade on the platform with the greatest liquidity. Therefore, in the end, we stand to gain,” added Chen.
Binance has set in place standards for listed investment managers to produce records of monthly returns that are validated by respected fund administrators as part of its due diligence procedures and to offer investors with knowledge of a fund’s previous performance.
All users of the platform have the option of remaining unidentified until they have connected with an advisor, and only investors can send inquiries about connections to investment managers.