Crypto exchange giant, Binance, has introduced a new feature called Fund Accounts, designed to provide institutional fund managers with a more efficient and flexible way to manage pooled investor assets.
The Fund Accounts offering allows fund managers to set up omnibus-style accounts—mirroring traditional finance structures—to consolidate investor capital under one or more centralized accounts. Notably, this solution enables streamlined strategy execution and easier fund administration compared to managing segregated accounts for each investor.
According to Binance, the goal is to lower entry barriers for institutional asset managers and enhance scalability across digital asset investments.
Speaking on the new innovation, Catherine Chen, head of Binance VIP & Institutional said:
Fund managers are seeking efficient, scalable solutions to adapt their strategies to the ever-evolving crypto landscape. Binance Fund Accounts is a plug-and-play tool that lets fund managers streamline investment management, allowing them to focus on strategy execution and efficient capital deployment.”
Key Features Reflect Traditional Finance Standards
The Fund Accounts platform introduces a Net Asset Value (NAV) per unit system, a widely used standard in traditional finance (TradFi). For context, this approach gives fund managers and investors a clear picture of profit and loss and ensures each investor can withdraw only their entitled share of assets.
While fund managers maintain full trading access over the Fund Accounts, deposits and withdrawals are handled exclusively by investors. This separation, Binance says, boosts investor confidence by improving custody and security protocols.
Additionally, each fund account can be tailored to a specific investment strategy, allowing managers to offer different risk profiles to varied investor bases while maintaining operational efficiency.
Bridging TradFi and Crypto Infrastructure
Until now, most crypto exchanges have lacked a unified account model for fund management, making it challenging for professionals to scale operations. Binance’s latest move introduces a structure more in line with traditional asset management practices, reducing operational complexity and cost for fund managers.
Investors and fund managers must still enter into separate legal agreements for capital subscription and redemption, a model intended to maintain transparency and align with regulatory expectations. Binance clarified that it provides only the technological infrastructure and is not a party to these contracts.
Binance stated that Fund Accounts are intended to foster growth in the crypto asset management sector by removing long-standing frictions—especially for emerging managers concerned with counterparty risks and scalability.
Growing Institutional Focus
The launch continues Binance’s broader strategy to attract institutional capital through TradFi-like services. Previous offerings include a banking triparty arrangement for enhanced asset protection and Binance Wealth, a platform supporting high-net-worth individuals.
Binance emphasized that the Fund Accounts function is not an investment product itself and that users remain responsible for due diligence and risk assessment.
More information can be found on Binance’s official website.
