Binance Launches Fund Accounts for Digital Asset Managers to Enhance Crypto Trading

Binance is introducing Fund Accounts, omnibus accounts for digital asset managers, allowing pooling of investor assets and simplifying crypto fund management to resemble traditional finance operations. Fund Accounts offer a universal net asset value (NAV) per unit, addressing standardization needs in crypto asset management. Eligible asset managers, licensed in their jurisdictions, can create multiple accounts with tailored strategies, targeting managers with AUM between $1-$20 million.

Binance, the largest cryptocurrency exchange globally, has launched special omnibus accounts, known as Fund Accounts, aimed at digital asset managers. This new offering allows the pooling of investors’ assets, which will simplify crypto fund management and align it more closely with traditional finance operations. Fund Accounts introduce a universal net asset value (NAV) per unit, providing a straightforward way to track profit and loss for each fund, aiming to establish a market standard in the crypto space.

The crypto trading environment is still evolving and is beginning to transition from a retail-focused market to one that is more appealing to institutions. This shift necessitates significant infrastructure changes. “Asset management is a very mature and well established industry in TradFi,” Catherine Chen, Binance’s head of institutional and VIP, stated in her comments. She added that the demand for this kind of infrastructure and expertise in crypto is substantial as the field continues to mature.

Chen pointed out that both investors and managers face various challenges. Trust holds immense value for investors, which is why they often prefer to engage with established brands that have transparent proof of reserves and clear NAV. With Binance’s Fund Accounts, eligible asset managers — who must hold licenses in their regions — will find that bureaucratic burdens are significantly reduced. They can now create multiple accounts and tailor their trading strategies to each fund they manage.

The potential target range for asset managers interested in these Fund Accounts is estimated to start at about $1 million in assets under management, extending up to approximately $20 million, according to Chen. She concluded that this infrastructure is particularly designed for newer or smaller asset managers, enabling them to effectively bootstrap and scale their business more efficiently.

This development represents another step in Binance’s ongoing efforts to cater to the institutional market, reinforcing the exchange’s position at the forefront of the rapidly changing landscape of crypto finance.