Binance announced the launch of a new platform, “Capital Connect,” to cater to its VIP and Institutional customers.
The world-largest crypto exchange announced a blog post on its official page on May 10.
However, these customers must meet set requirements to qualify, and regional restrictions apply to using the platform.
Capital Connect Bridges The Gap Between Investors and Fund Managers
According to the exchange, Capital Connect aims to foster mutually beneficial connections between investors and investment fund managers.
As such, investors can access vital strategies from the managers to aid their investment decisions.
They can also browse the available funds’ options on the platform to diversify their portfolio allocations.
Further, investors on Capital Connect can choose investment managers based on their respective Sharpe Ratios, investment strategies, AUM, redemption terms, and fees.
On the other hand, investment managers can gain more clients by creating awareness of their funds and the benefits to investors.
However, the platform is only accessible to VIP-level investors who pass their identity verifications through KYC requirements.
Also, investors already part of Binance Institutional can access Capital Connect.
They will also meet the capital requirement, which Binance stated must be “an initial minimum deposit balance of $100K.”
They must also work with reputable Fund Administrators who will verify their past return data and share the record with Binance.
But generally, participation for investors and Investment managers also depends on whether a customer is from an approved region.
Binance Expands Its Benefit to Customers Through Capital Connect
Binance has continually expanded its products and services to cater to the evolving needs of its global customers.
Binance’s new platform aims to give investors access to diverse information that will mitigate the challenges of making profitable investment decisions.
By bringing the investors and managers together under a unified platform, Binance hopes the parties rely on one another to further their respective goals.
Most importantly, these parties will gain from Capital Connect without making financial sacrifices, given that the platform is cost-free.
Binance also disclosed that the exchange of information would be automated on the platform, and participants would remain anonymous during the processes leading to a connection.
Only investors are allowed to initiate connection requests to the Investment Managers who will analyze them to accept or not.
This approach will enable investors and managers to choose the right connections without coercion or influence.
Notably, the exchange stated clearly that it wouldn’t participate in filtering or choosing Investors and Investment Managers on Capital Connect.
Also, it won’t be involved in subsequent discussions leading to a connection between the two sides.
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