Binance, one of the world’s largest cryptocurrency exchanges, has announced the launch of its latest offering, Capital Connect. The new platform seeks to connect institutional investors with crypto investment fund managers, providing them with access to a wide range of investment opportunities.
Available to Binance VIP-level users at launch, the platform will cater to asset and fund managers, brokers, hedge funds, family offices, high net-worth individuals, liquidity providers, and corporations. According to an official blog post, the service will be free for all existing Binance VIP clients in non-restricted regions.
Investment Opportunities for VIP Clients
Binance’s Capital Connect platform offers investment opportunities for VIP-level users to diversify their portfolio allocations. As investors, users will be able to browse various funds and pick investment managers based on strategies, redemption terms, fees, assets under management (AUM), and Sharpe ratios.
Investors are the only ones who can initiate connection requests, and investment managers can scan through their profiles before accepting a connection. Investment managers are required to provide records of monthly returns verified by reputable fund administrators, which can assist investors in referencing a fund’s past performance.
Hands-Off Approach from Binance
Binance will not be involved in any discussions between parties after establishing a successful connection. The crypto exchange also said it will not guarantee any investment returns. This hands-off approach allows investors and fund managers to operate within the platform’s parameters.
“With Capital Connect, one of our goals has been to provide a new way for investors and investment managers to connect. We hope this will also demonstrate our commitment to supporting the growth and adoption of digital assets,” said a Binance representative.
The launch of Capital Connect comes amidst Binance facing massive pressure on the US regulatory front. However, Binance has been pouring money and resources into global compliance over the past year, which has helped the exchange win approvals across several jurisdictions in Europe, such as France, Italy, Lithuania, Spain, Cyprus, and Poland.
Moreover, Binance plans to reenter the Japanese market after June this year by acquiring regulated crypto exchange Sakura Exchange BitCoin. Binance’s continued expansion is an indicator of the exchange’s bullishness on the future of the cryptocurrency market.