Binance, the biggest cryptocurrency exchange by trading volume, has unveiled Binance Wealth, a white glove service that allows private client managers to easily onboard high-net-worth individuals and offer them a wide range of digital assets.
Wealth managers will handle the onboarding of clients by submitting know-your-customer (KYC) documentation and creating individual sub-accounts on Binance for each client, allowing them to trade or stake a wide range of cryptos with the feel of traditional wealth management framework, exchange said on Tuesday. Support from Binance VIP key account client managers is also available.
Crypto assets are widely accepted as portfolio diversification spice among institutional investors with the arrival of bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) earlier this year, which had probably meant further validation for the asset class among high-net-worth individuals (HNWIs).
Despite appearances, Binance Wealth is not a financial advisory service but a technological solution designed to meet the needs of wealth managers, with the necessary infrastructure allowing them to oversee and support their clients’ exposure to crypto, explained Catherine Chen, head of Binance VIP & Institutional, in an email.
The service is offered through the global Binance.com platform meaning there are restrictions for some jurisdictions; Binance Wealth will not be available in the U.S., for instance. The initial focus will be on Asia and Latin America, according to a Binance spokesperson.
“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 said. “This of course is still subject to who the wealth managers can service in the first place, based on their respective license/exemption.”
In terms of custody, the assets belonging to each end-client are held in the clients’ own allocated sub-account.
“The client will retain full control of their assets which are held in the respective wallets under their account on the Binance platform. User assets are viewable in our Proof of Reserves page,” a Binance spokesperson said.
The VIP wealth offering will not come with cheaper fees, like the exchange’s prime broker Link service, which was designed for enterprises.
“Standard trading fees apply. Binance offers a highly-competitive fee structure, and users who qualify for our VIP Program receive attractive fee discounts,” Chen said.
