Binance, the leading cryptocurrency exchange, has introduced a new service called Binance Wealth. This service is specifically designed for private client managers to easily onboard high-net-worth individuals and provide them with access to a wide range of digital assets.
Through Binance Wealth, wealth managers will be able to handle the onboarding process for clients by submitting necessary documentation and creating individual sub-accounts on the Binance platform. This will allow clients to trade or stake various cryptocurrencies within a framework that resembles traditional wealth management practices. Additionally, support from Binance VIP key account client managers is available to assist with the process.
It is important to note that Binance Wealth is not a financial advisory service, but rather a technological solution aimed at meeting the needs of wealth managers. Catherine Chen, the head of Binance VIP & Institutional, explained that the service is designed to help wealth managers oversee and support their clients’ exposure to the world of cryptocurrency.
While Binance Wealth is accessible through the global Binance.com platform, there are certain restrictions based on jurisdictions. For example, the service will not be available in the United States. The initial focus of Binance Wealth will be on regions such as Asia and Latin America, according to a Binance spokesperson.
In terms of custody, each client’s assets are held in their own allocated sub-account on the Binance platform. This means that clients have full control over their assets, which are stored in wallets under their respective accounts. The assets are also visible on Binance’s Proof of Reserves page for added transparency.
It is worth mentioning that the VIP wealth offering does not come with reduced fees like Binance’s prime broker Link service, which is tailored for enterprises. Instead, standard trading fees apply, but users who qualify for Binance’s VIP Program may receive attractive fee rebates, as stated by Catherine Chen.
Overall, Binance Wealth presents a new opportunity for high-net-worth individuals to access a diverse range of digital assets through the guidance and support of their wealth managers. With the growing acceptance of cryptocurrency among institutional investors, services like Binance Wealth could further validate the asset class for HNWIs looking to diversify their investment portfolios.