Binance has launched Fund Accounts, a new tool for portfolio managers in crypto. This initiative aims to bridge traditional finance and cryptocurrency by consolidating investor assets into omnibus accounts, reducing complexity in asset management. The move is indicative of increasing institutional interest in digital assets, encouraged by developments such as Bitcoin ETFs and the growth in tokenized assets.
Binance, the world’s largest cryptocurrency exchange by trading volume, has launched a new service called Fund Accounts aimed at making asset management easier for portfolio managers. This step underscores the increasing sophistication of tools for institutional investors within the digital asset realm. The launch occurred on April 24, reflecting Binance’s commitment to bridging the gap between traditional finance and the burgeoning crypto world.
Fund Accounts enable portfolio managers to consolidate investor assets into one or more omnibus accounts. This arrangement is designed to reduce operational complexity while also facilitating more efficient trade execution. In essence, the omnibus accounts work through a common custodian who manages trades on behalf of multiple clients.
However, to use the Fund Accounts program, eligible fund managers need to connect with their Binance VIP representative. A spokesperson from Binance confirmed that both fund managers and their investors must comply with the Know Your Customer (KYC) and Know Your Business (KYB) regulations, as well as hold the necessary licenses or receive exemptions in their respective jurisdictions.
The introduction of Fund Accounts by Binance happens amid a broader trend where institutional finance is gradually merging with the cryptocurrency sector. Traditionally cautious of crypto, institutional investors are now stepping in, especially following the advent of Bitcoin exchange-traded funds (ETFs) and the increasing tokenization of real-world assets, all offering enticing yield opportunities.
In a related development on the same day, Theo, a provider of onchain trading infrastructure, announced it had obtained $20 million in funding to bolster its trading platform for institutional investors. Funding came from seventeen investors, notable among them being angel investors from Jane Street, JPMorgan, and Citadel, showcasing that institutional interest in crypto continues to rise.
This trend highlights how companies in the blockchain sector are also stepping up their game to provide trading solutions that target both institutional and retail investors alike. As these tools and infrastructures evolve, observers suggest that we may see significant growth in the crypto space in the near future.
