Binance, the world’s largest crypto exchange, has announced the launch of Capital Connect. This new self-service platform connects institutional investors and high-net-worth individuals with crypto investment managers.
The platform is available only to Binance VIP clients and is subject to regional restrictions. Such as Capital Connect won’t be available for users in restricted countries, including the United States.
Users must apply for access as an Investor or Investment Managers to use the service. The platform is free for all existing Binance VIP clients and provides a streamlined and cost-free platform for investors and investment managers to connect within the exchange Ecosystem.
As an Investor, users can browse different funds and diversify their portfolio allocations. Investors will be able to choose Investment Managers based on strategies, redemption terms, fees, AUM, and Sharpe Ratios. As an Investment Managers, users can increase the awareness of their funds and develop new clients.
It’s important to note that Binance VIP clients who meet the eligibility criteria in approved regions are eligible to apply as Investors. Additionally, listed Investment Managers must undergo Binance KYB verification, which reliable Fund Administrators facilitate.
As stated in the announcement, the return data from the past must be authenticated by their corresponding Fund Administrator. The exchange does not exercise any filtering or selection of either Investment Managers or Investors and will not participate in any further conversations.
The platform also offers an automated and secure exchange of information, and participants remain anonymous to protect user information until a connection is completed.
Only Investors can initiate connection requests, after which Investment Managers can analyze the investors’ profiles and determine whether to accept.
Binance Reports 128M Users, Sees High Demand For Passive Investing
Meanwhile, according to a recent interview, Binance has revealed that it now has 128 million users. The exchange’s head of Binance VIP and Institutional, Catherine Chen, said there had been a surge in demand for a platform that allows investors to park their capital with active fund managers without trading crypto on their own.
This has led to the creation of the Capital Connect platform, which the exchange won’t charge any fee or commission for providing. Chen stated that the company would ultimately benefit from the platform as investment managers typically trade on platforms with deep liquidity.
Capital Connect is the first platform of its kind in the crypto space and aims to be more efficient and address pain points for high net-worth clients. Binance won’t do due diligence on fund managers but will only permit “very high-quality” managers who have completed Binance’s verification checks, according to Chen.
Nevertheless, with its robust features and growing user base, Binance continues to solidify its position as a leading player in the cryptocurrency market.
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