Binance, the largest cryptocurrency exchange globally, is set to launch a new type of account designed for digital asset managers. These accounts will allow for pooling of investors’ assets, making the operations of crypto fund management more aligned with traditional finance.
Key Highlights:
- Binance’s Fund Accounts will provide a universal net asset value (NAV) per unit, thereby easing administrative burdens.
- Asset managers, who must be licensed in their jurisdictions, will have the ability to create multiple fund accounts and implement varied trading strategies tailored to each fund.
Unlike the often exclusive world of traditional finance, the crypto trading landscape is evolving from a relatively simple retail framework to a more institutionally-friendly setup. “Asset management is a very mature and well-established industry in traditional finance,” noted Catherine Chen during an interview. “In crypto, there’s a significant demand for expertise and better infrastructure since the barriers to entry and the learning curve can be steep right now.”
Chen emphasized the importance of trust for investors, mentioning that a recognized brand with verifiable reserves and transparent NAV is critical for gaining investor confidence. The anticipated asset managers interested in Binance Fund Accounts range from managing approximately $1 million to as much as $20 million in assets, aiming to support both newer and smaller asset managers as they grow their businesses.
