Binance launches ‘Binance Wealth,’ a high-net-worth client service based on Asia and Latin America, offering wealth managers an easy, crypto-friendly platform.
Asia and Latin America will be the initial focus, according to Binance.
Binance, the largest cryptocurrency exchange by trading volume, has introduced Binance Wealth. This white glove service makes it simple for private client managers to offer a variety of digital assets to high-net-worth clients and onboard them.
According to the exchange on Tuesday, wealth managers will be in charge of client onboarding by submitting know-your-customer (KYC) paperwork and setting up separate sub-accounts on Binance for each client. This will enable them to trade or stake a variety of cryptocurrencies while maintaining the feel of a traditional wealth management framework. Client managers for Binance VIP key accounts are also available to assist.
Since the introduction of bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) earlier this year, which likely meant additional validation for the asset class among high-net-worth individuals (HNWIs), crypto assets have gained widespread acceptance among institutional investors as a spice for portfolio diversification.
Catherine Chen, head of Binance VIP & Institutional, clarified in an email that, contrary to appearances, Binance Wealth is a technological solution created to satisfy the needs of wealth managers with the infrastructure required to monitor and support their clients’ exposure to cryptocurrency.
Certain jurisdictions are restricted since the service is provided via the international Binance.com platform; for example, Binance Wealth will not be accessible in the United States. A representative for Binance stated that Asia and Latin America would be the initial focus.
“Wealth managers who live in jurisdictions where Binance.com is accessible and who are eligible to use it can assist in onboarding and supporting their clients,” Chen stated. Naturally, this still depends on who the wealth managers can initially serve by their licenses and exemptions.
Regarding custody, each end-client’s assets are kept in their designated sub-account.
“The client will continue to have complete control over the assets stored in the wallets associated with their Binance account. Our Proof of Reserves website allows users to view their assets,” a Binance representative stated.
Unlike the exchange’s prime broker Link service, created for businesses, the VIP wealth offering will not have lower fees.
“Trading fees are standard.” Users that are eligible for our VIP Program enjoy alluring fee discounts, and Binance has a very competitive cost structure,” Chen stated.
