AI News Feed
Market watch
Companies

Binance Opens Capital Connect to Wealthy Individual Investors

Binance is opening its Capital Connect platform to wealthy individual investors for the first time, allowing those with at least $1 million in assets to compare and invest in professional trading strategies previously offered mainly to institutions. The platform had 212 portfolios from 77 trading teams as of September, up from 106 portfolios and 35 teams in May.

Individual investors are eligible if they meet financial requirements, including holding at least $1 million in assets, according to CNBC. Catherine Chen, head of Binance VIP and institutional, told CNBC that individual investors "want access to Capital Connect." "This is really us answering their demand," Chen said.

Capital Connect is built on Binance's Portfolio Account infrastructure, which handles functions including management and performance fees and risk metrics, while trading teams manage the investment strategies, Chen said. She compared the setup to separately managed accounts in traditional finance, with investors able to allocate to a strategy without the trading team setting up a separate fund vehicle.

Traditional financial institutions have been competing for high-net-worth money and continuing to boost their offerings in digital assets, according to CNBC. Binance's move turns the tables, with a crypto company working to appeal to wealthy investors who may want options with a range of strategies and asset classes.

Binance has observed qualified investors focusing on trading teams' track records and standardized performance data, while the teams themselves tend to prioritize research and strategy development over fund administration and other operations, the company said. Capital Connect had 212 portfolios from 77 professional trading teams as of September, up from 106 portfolios and 35 teams in May, according to CNBC.

Capital Connect started with crypto-only strategies, but more trading teams have since added traditional finance instruments to their strategies, Chen said. The teams range from traditional asset managers to crypto-native quantitative firms, with many operating across both markets, according to the company.

Binance has also been expanding its offerings tied to traditional financial assets, including around-the-clock perpetual futures linked to both pre-IPO and publicly traded companies, CNBC reported.