Binance Launches Fund Accounts for Asset Managers, Bridging Crypto and Traditional Finance

Cryptocurrency exchange Binance has launched a new fund management solution designed to simplify the asset management process for portfolio managers, highlighting the growing maturity of institutional tools in the digital asset space.

Yesterday, Binance launched the Fund Account service, a tool commonly used by traditional asset managers and brokerage firms to consolidate client assets and simplify portfolio management.

Binance said that Fund Account allows portfolio managers to "consolidate externally raised investor assets into one or more omnibus accounts," which can reduce operational complexity and enable more efficient trade execution.

These omnibus accounts are supposedly operated by a single custodian and execute trades on behalf of clients.

The new program is only open to eligible fund managers, who need to contact their Binance VIP account manager for more information.

A Binance spokesperson revealed that fund managers and their investors must pass "know your customer" (KYC) and "know your business" (KYB) audits and obtain a license or exemption in their jurisdiction to use the Fund Account product.

According to CoinMarketCap data, Binance is the world's largest cryptocurrency exchange by trading volume. The exchange updated its VIP program requirements for institutional investors and private clients in December.

Traditional finance and cryptocurrencies are accelerating their integration

Binance's fund account service is another example of the integration of traditional financial solutions with cryptocurrencies, showing the growing participation of institutions.

In the first decade of cryptocurrency development, institutional investors mostly stayed on the sidelines. Now, driven by the launch of Bitcoin exchange-traded funds (ETFs), the rise of physical asset tokenization, and the attractive income opportunities provided by on-chain lending, institutional investors are beginning to enter this field.

Blockchain companies are also working to bring institutional-grade trading solutions to cryptocurrency native users.

On April 24, Theo, an on-chain trading infrastructure provider, announced that it had raised $20 million to expand its institutional-grade trading platform for retail investors. 17 investors participated in the round, including angel investors from Jane Street, JPMorgan, and Citadel.