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On October 29, Binance launched Binance Wealth, a premium service aimed at facilitating the entry of high-net-worth individuals/clients (HNWIs) into the digital asset market.
This exclusive service allows private client managers to aid clients in managing a variety of digital assets, resembling conventional wealth management approaches.
Binance for Wealth Managers: A Method to Onboard Whales
This offering enables wealth managers to supervise their clients’ onboarding process and provide investment suggestions, ensuring that these clients receive robust support throughout their onboarding experience.
Today signifies a new era for wealth management.
Introducing #Binance Wealth, the world’s first technological solution specifically designed for wealth managers to directly introduce crypto to their clients on a digital asset exchange.
Learn morehttps://t.co/0KXmIvlraH pic.twitter.com/CqnWHWseyW
— Binance VIP & Institutional (@BinanceVIP) October 29, 2024
Wealth managers must first apply to gain access to Binance Wealth. Once onboarded, they can guide their clients through the onboarding process by submitting the required Know Your Customer (KYC) and Know Your Business (KYB) documentation for verification.
Upon successful onboarding, clients will manage their own investments while also receiving personalized recommendations from their wealth managers for consideration and approval.
Binance Wealth aims to address the growing demand from the private wealth sector, where high-net-worth individuals are looking for exposure to digital assets.
As stated in the announcement, wealth managers and their clients will experience a user interface that closely resembles the traditional financial advisory model they are familiar with.
The platform will also offer a comprehensive dashboard that provides wealth managers with an overview of onboarded clients and their portfolios.
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Catherine Chen, head of Binance VIP & Institutional, emphasized that Binance Wealth is not a financial advisory service but a technological solution designed to meet the needs of wealth managers.
“The service offers the essential infrastructure for managing and supporting clients’ exposure to crypto,” Chen explained in an email.
Binance Wealth Management Service had Restrictions for U.S. Clients
It is crucial to highlight that Binance Wealth will be accessible through the global Binance.com platform, which means certain jurisdictions may encounter limitations.
For example, the service will not be available in the U.S. The initial focus of this offering will be on markets in Asia and Latin America.
“Wealth managers can assist in onboarding and supporting their clients who are eligible to use Binance.com—those residing in jurisdictions where Binance.com operates,” Chen noted.
Chen also mentioned that eligibility for the service will depend on the specific licenses or exemptions held by wealth managers.
Concerning asset custody, each client’s assets will be maintained in designated sub-accounts, allowing clients to maintain complete control over their assets.
“The client will maintain full control of their assets, which are stored in the respective wallets under their account on the Binance platform,” a Binance spokesperson stated. “User assets are viewable in our Proof of Reserves page.”
Importantly, despite the premium nature of the Binance Wealth offering, it will not feature lower fees. Standard trading fees will apply, similar to Binance’s prime broker Link service intended for enterprises.
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