Binance recently announced that it is expecting an influx of institutional traders as the blockchain industry and cryptocurrency markets mature. The crypto-centric startup intends to roll out a new set of services to fill the needs of institutional traders and investors.
Binance Raises Strategic Investment to Develop Products for Institutional Investors
Vertex Ventures had previously announced that it led an investment round in Binance to fund the creation of fiat/crypto exchanges in Singapore and Southeast Asia. The firm considers this investment round and expansion into Asia to be among the first milestones it will surmount in order to attract more institutional investors.
”[CEO] Changpeng Zhao is one of the most well-respected entrepreneurs in blockchain with high inspiration to build and promote the blockchain ecosystem,” Choon Chong Tay, Managing Partner at Vertex Ventures China, said in a press release announcing the new investment.
Some Institutional Level Perks Already Available
In July, Binance rolled out tiered trading fees that offer discounts for higher volume traders. Basic level accounts that trade less than 100 bitcoin (BTC) and/or hold no Binance Coin (BNB) pay 0.1% in fees. The startup introduced eight VIP levels that may pay fees as low as 0.02%, with the fee structure being based upon trading volume and number of BNB held by traders.
The Malta-based company has also improved support for corporate accounts and enhanced its API to allow for greater security and customization. The API now includes multiple levels that can include read-only, transfer, and trading permissions for developers.
New Features Upcoming in Q4 2018 Roadmap
Binance has mentioned that its Q4 2018 goals include streamlining and optimizing the core trading experience for corporate traders, with such measures including bolstering its trading engine and maintaining high-quality customer service.
Upcoming features include support for up to 200 sub-accounts, which are partitioned, but connected accounts requested by institutions, by the end of December. There would be no fees for transfer of funds between sub-accounts and the owner of the main account would maintain full control of sub-accounts on that account.
The world-renowned startup is also planning more offline meetups to enable networking and industry discussion among corporate traders and experts. With the upswing in institutional interest in cryptocurrency, Binance may become one of the frontrunners among exchanges in attracting corporate traders due to its efforts to put the tools in place to support them.
Binance’s move to attract institutional traders is likely being made in a bid to capitalize on the shifting fabric of this industry, which has seen players like Goldman Sachs, Intercontinental Exchange, and TD Ameritrade to dive head-first into the crypto fray, so to speak.