Binance, the largest cryptocurrency exchange by trading volume, has introduced Binance Wealth, a premium service designed to cater to high-net-worth individuals (HNWIs) seeking exposure to digital assets. Announced on Tuesday, Binance Wealth aims to streamline the onboarding process for private client managers, enabling them to offer a diverse range of cryptocurrencies within a traditional wealth management framework.
Under this service, wealth managers will assist clients by submitting the necessary know-your-customer (KYC) documentation and creating individual sub-accounts on Binance. This setup allows clients to trade and stake various cryptocurrencies while receiving dedicated support from Binance’s VIP key account managers.
Catherine Chen, head of Binance VIP & Institutional, clarified in an email that Binance Wealth is not a financial advisory service but rather a technological solution tailored to meet the needs of wealth managers. The platform provides the necessary infrastructure for them to oversee and support their clients’ crypto exposure.
The introduction of crypto assets as a portfolio diversification strategy has gained traction among institutional investors, particularly following the recent launch of bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs), which have further validated the asset class for HNWIs.
However, Binance Wealth will not be accessible in all jurisdictions. Notably, the service will not be available in the U.S., with the initial focus on markets in Asia and Latin America. "Wealth managers can help onboard and support their clients who are eligible to use Binance.com—residing in jurisdictions where Binance.com is available," Chen stated. Eligibility is contingent upon the licensing and exemptions of the wealth managers themselves.
In terms of asset custody, each client’s assets will be held in their allocated sub-account, ensuring that they retain full control over their digital assets. These assets can be viewed on Binance’s Proof of Reserves page, providing transparency and security.
Importantly, the Binance Wealth service does not offer reduced fees, unlike the exchange’s prime broker Link service designed for enterprises. "Standard trading fees apply," Chen noted. However, Binance maintains a competitive fee structure, with attractive rebates available for users who qualify for the VIP Program.
As Binance Wealth rolls out, it represents a strategic move to engage the growing segment of affluent clients looking to incorporate cryptocurrencies into their investment portfolios. With tailored support and robust infrastructure, Binance aims to solidify its position in the wealth management landscape within the crypto space.
October 2024, Cryptoniteuae