Binance Targets Institutional Market with Launch of “Fund Account” to Compete with Traditional Financial Fund Operations

Binance Launches New “Fund Accounts” Service for Digital Asset Managers

Cryptocurrency exchange Binance has announced the launch of its new “Fund Accounts” service, designed for digital asset managers. This service aligns more closely with traditional financial operating logic, reducing the operational burden on newly appointed fund managers and enhancing investors’ transparency and trust in fund management.

In the announcement, Binance pointed out that this new mechanism allows fund managers to aggregate and manage investors’ funds, introducing the commonly used concept of “Net Asset Value (NAV)” from traditional asset management. This will enable clear calculation and tracking of profits and losses for each fund. This feature also addresses the current issue of a lack of unified standards in the cryptocurrency asset management market.

Catherine Chen, head of Binance’s Institutional and VIP Division, stated:

“Asset management is a mature and well-structured industry in traditional finance. In the cryptocurrency space, we believe there is a strong demand for this kind of expertise and infrastructure, as the current entry barriers and learning curves remain relatively steep.”

She noted that the newly launched fund account mechanism helps simplify administrative and operational processes, allowing licensed asset managers to create multiple sub-accounts based on different strategies, thus achieving more flexible portfolio allocation and management.

According to Binance’s estimates, fund accounts will primarily attract emerging asset management companies and funds with asset sizes ranging from $1 million to $20 million. Catherine Chen remarked:

“(The target clients) will be a mixed group. However, it is clear that this infrastructure is mainly designed for new or smaller asset managers to help them kickstart their businesses and expand steadily.”

She also added that for investors, using a trading platform with brand reputation, transparent asset reserves, and queryable NAV is key to enhancing market trust.