Binance is opening its Capital Connect platform to wealthy individual investors for the first time, a service previously reserved for institutions. The move lets qualifying investors compare and allocate to professional trading strategies as the exchange pushes further into traditional finance.
Binance is opening Capital Connect to individual investors, extending a platform that was previously limited to institutional clients. Eligible users must meet financial requirements, including holding at least $1 million in assets, before they can compare and invest in professional trading strategies through the platform.
Binance courts wealthy individual clients
Capital Connect runs on Binance's Portfolio Account infrastructure, which handles management and performance fees and risk metrics, while separate trading teams manage the investment strategies, said Catherine Chen, head of Binance VIP and institutional. She compared the structure to separately managed accounts in traditional finance, where investors allocate to a strategy without the trading team setting up a separate fund vehicle.
Individual investors want access to Capital Connect, Chen told CNBC. "This is really us answering their demand." She said this to CNBC.
Capital Connect had 212 portfolios from 77 professional trading teams as of September, up from 106 portfolios and 35 teams in May. Binance said qualified investors tend to focus on trading teams' track records and standardized performance data, while the teams themselves prioritize research and strategy development over fund administration.
Moving beyond crypto-only strategies
Capital Connect started with crypto-only strategies, but more trading teams have since added traditional finance instruments, according to Chen. The teams range from traditional asset managers to crypto-native quantitative firms, with many operating across both markets.
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. Traditional financial institutions have been competing for high-net-worth money while boosting their own digital-asset offerings — Binance's expansion turns that competition around, with the exchange now courting wealthy investors.
Source: CNBC
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