Binance is launching a new platform called ‘Capital Connect’ to connect institutional investors with crypto investment fund managers. This platform will initially be available for Binance VIP-level users, such as asset and fund managers, brokers, hedge funds, family offices, high net-worth individuals, liquidity providers, and corporations.
Binance’s Free Service for VIP Clients
The service will be free for existing Binance VIP clients in non-restricted regions. Binance will not charge any fees or commission for this service. VIP-level users that have completed the verification process can apply for access as either an Investor or Investment Manager or both.
As an Investor, users can browse various funds and diversify their portfolio allocations. They can also select Investment Managers based on strategies, redemption terms, fees, AUM, and Sharpe Ratios.
Investors can initiate connection requests, which Investment Managers can accept after reviewing the investors’ profiles. Investment Managers must provide records of monthly returns verified by reputable fund administrators. This data can help investors reference a fund’s past performance.
After a successful connection, Binance will not be involved in any discussions between parties and will not guarantee any investment returns.
“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.”
FUD and Expansion
Binance is under pressure from US regulators but has received approvals across several European jurisdictions, including France, Italy, Lithuania, Spain, Cyprus, and Poland, by investing in global compliance. The company plans to re-enter the Japanese market after June 2022 through its acquisition of regulated crypto exchange Sakura Exchange BitCoin.