Binance, the largest crypto exchange by trading volume,;has launched;a new platform dubbed Capital Connect to lay a bridge between;institutional investors;seeking to invest in crypto and crypto investment fund managers.
The company said the platform aims to reduce information asymmetry, the lack of common standards, and network inefficiencies within the crypto industry.:
- Capital Connect is currently only used by Binance's VIP users involving brokers, hedge funds, family offices, and;high-net-worth individuals.
- The platform will allow institutional clients to invest in crypto assets safely and efficiently.;
- Users will be able to access information about the assets under management (AUM) of different funds, their performance records, and minimum investment amounts.
- Interested investors will be able to request contact, and investment managers will review this request, along with the client's information, before accepting a connection.
- The client's information will be kept anonymous until both parties agree upon a connection.
- Binance will not get involved in discussions and deals between the two sides.
- The platform currently lists more than 20 funds, and Binance plans to increase this number in the upcoming months.
- Binance reported an 8.3% increase in the number of new institutional clients in Q1 from the previous quarter and a 65% rise in active institutional users in 2022.