Key Points
- Binance Wealth service will allow the onboarding of wealthy individuals to the exchange.
- High-net-worth clients will get access to a vast range of digital assets.
Binance is opening the way for elite clients to join the platform via a newly announced service.
The exchange just revealed its service for elite customers – Binance Wealth. The new service will allow private client managers to onboard wealthy individuals to the crypto exchange and offer them a wide range of digital assets.
According to the latest reports, wealth managers will be the ones onboarding high-net individuals by submitting KYC documentation and creating individual sub-accounts on the exchange for their clients.
Elite Clients Can Trade and Stake Crypto
Binance said that the new elite clients will be able to trade or stake a vast range of digital assets in a similar manner provided by the framework of traditional wealth management.
According to the exchange, support from Binance VIP key account client managers will also be available.
Digital assets have become a widely accepted option in portfolio diversification, and institutional investors have already started pouring important amounts into the recently launched Bitcoin and Ethereum ETFs.
Bitcoin ETFs launched in the US at the beginning of 2024, on January 10, and the crypto products have recorded immense success with over $22.4 billion in cumulative flows so far.
The crypto products’ rising success brought more validation of digital assets among wealthy individuals.
Clients Will Have Sub-Accounts Allocated
Regarding the custody of the funds, the digital assets belonging to clients will be held in the sub-accounts that will be allocated to wealth managers’ clients.
According to a Binance spokesperson, clients will own full control over their assets held in their wallets, under accounts on the platform. Also, user assets will be visible on Binance’s Proof of Reserves page.
Here, clients can verify that their assets are fully backed, at least 1:1. Binance also highlights that the majority of its corporate holdings are stored in wallets that are not included in the proof-of-reserves calculations.
Service Fees
There will be standard fees applied to clients when using this service, unlike the cheaper ones that come with Binance’s prime broker Link service, designed for enterprises, for instance.
Binance has a highly competitive fee structure, and users who are qualified for the platform’s VIP Program get access to attractive fee rebates, said Catherine Chen, head of Binance VIP & Institutional.
Binance Wealth – A Technological Solution
According to reports, Binance Wealth is not a financial advisory by a technological solution.
According to Chen, the service represents a solution that:
- Is designed to meet the needs of wealth managers
- Has the necessary infrastructure to allow high-net-worth individuals to get exposure to crypto
The service will be offered via the global Binance platform, and this means that there are some jurisdiction restrictions including the US. However, Binance Wealth will be initially focused on Asia and Latin America.
Chen explained that wealth managers can support the onboarding of their clients who are eligible to use Binance’s platform, but this remains subject to who the wealth managers can service in the first place, according to their license or exemption.
Binance‘s latest move comes in support of the global crypto adoption and it marks an important milestone regarding high-end clients’ exposure to crypto.
2024 marked a strong debut for institutional crypto investments that continued throughout the year.
