Binance Wants To Connect Crypto Funds With Institutional Capital

Binance hopes its new platform, Capital Connect, will be a central hub for institutional investors seeking portfolio managers

by Sebastian Sinclair /

May 10, 2023 06:00 am

diy13/Shutterstock, modified by Blockworks

Binance is rolling out a “self-service” platform aimed at connecting institutional capital with crypto funds.

Dubbed Capital Connect, the platform sets disclosure standards for market participants handling size, allowing investors to review detailed fund information before potentially opening lines of communication.

Data on assets under management, performance records and minimum investment amounts are expected to be shared, among other details.

Capital Connect is targeted at asset and fund managers, brokers, hedge funds, family offices and high net-worth individuals, liquidity providers and corporations.

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Changing interest rates and macroeconomic conditions have increased institutional inquiries from investors with differing investment theses on digital assets, Catherine Chen, head of Binance VIP and Institutional said in a statement.

“Increased capital flow in crypto asset funds will have positive spillover effects and benefit the entire ecosystem,” Chen said.

Binance won’t Connect Capital in the US

The platform is open to Binance VIP-level users, a status that starts by holding the equivalent of 200,000 BUSD in user accounts. To participate, both investors and investment managers must complete Binance Institutional’s know-your-customer verification.

A Binance spokesperson told Blockworks the platform defines “institutional investors” as entities that allocate funds on behalf of others: family offices, pension funds and the like, though specific definitions “vary from region to region.”

“Crypto investment funds” are portfolios composed of digital assets maintained by investment managers for their clients, they said.

Screenshot of the Capital Connect interface (source: Binance)

Allocators across the US are set to be left out, however. Binance said Capital Connect will only be available in certain jurisdictions across Latin America and Asia Pacific, as well as Europe, Middle East, and Africa.

Binance declined to provide specific jurisdictions in which Capital Connect would be offered.

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