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Binance launches Capital Connect to connect crypto funds with institutional investors

Binance launches Capital Connect to connect crypto funds with institutional investors

Investors can use it to look at the assets under management (AUM) of different funds, how well they have done in the past, and how much they need to spend to start.

The foremost cryptocurrency exchange in the world, Binance, has launched Capital Connect, a platform that connects institutional investors with crypto investment fund managers.

Capital Connect is presently exclusive to VIP-level Binance users, who include brokers, hedge funds, family offices, and high-net-worth individuals, among others.

Capital Connect by Binance simplifies crypto investment

The tool will make it easy and safe for institutional investors who want to get into the crypto market to do so, the company said. It will tell you about the different funds’ assets under management (AUM), how well they’ve done, how much you need to spend to start, and other important facts.

Before accepting a connection, investment managers can examine information about institutional clients after being contacted. Capital Connect automates the procedure, and information is kept confidential until both parties agree to a connection.

“Investors and fund managers continue to encounter network inefficiencies due to a lack in market standards,” Catherine Chen, Head of Binance VIP and Institutional, said in a press release.  She added: “With Capital Connect, we can help create information disclosure standards for market participants with different investing and fund-raising needs.”

While Binance will enforce institutional Know-Your-Customer (KYC) and Know-Your-Business (KYB) standards to all parties with an interest, that must also qualify for VIP status, the firm will not participate in negotiations or transactions between investors and fund managers.

At the time of writing, more than twenty funds had been listed, and Binance plans to continue adding more in the coming months.

A look at Binance’s institutional adoption reveals that during the first quarter of 2023, the colossus onboarded 8.3% more institutional clients than in the previous quarter, while the number of active institutional users increased by 65% in 2022, as reported by the exchange.

Binance, a major player in the crypto industry, has introduced Capital Connect, a new product aimed at expanding its presence in all aspects of the cryptocurrency sector. The platform’s goal is to decrease information asymmetries, network inefficiencies, and the absence of standard practices at the institutional level.

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