Binance, the largest cryptocurrency exchange in the world, offers special accounts of digital asset managers that allow the grouping of assets of their investors so that cryptographic fund management operations feel more like a traditional financial experience.
The “fund accounts” of Omnibus introduce a value of net universal asset (NAV) per unit of concept used by the Buyide companies to provide a clear and traceable gain and loss for each fund, addressing the lack of a common market standard in the management of cryptographic assets, Binance said Wednesday.
Unlike the rarified world of high finance, cryptographic trade is still developing from a relatively little sophisticated retail market in a more friendly environment for the institution, a process that requires a transformation of infrastructure.
“Assets management is a very mature and well established industry in tradfi,” said Binance Chief of Institutional and Vip Catherine Chen in an interview. “In Crypto, we believe that there is a lot of demand for this particular experience and infrastructure because, for the moment, the entry barriers and the learning curve remain relatively steep.”
There are weak points for investors and managers, Chen said. For investors, trust is important, so the use of a brand established with clear reservations and transparent Christmas are key factors, he said.
Eligible asset administrators, who need to have a license in their respective jurisdictions, no longer face such a heavy burden of administrator and other operational tasks, and can create multiple fund accounts and implement different commercial strategies adapted to each fund.
The expected size of asset administrators who are probably attracted to Binance Fund accounts could vary from approximately $ 1 million assets under administration (AUM) at the lower extreme, to around $ 20 million, Chen estimated.
“It will be a mixture. But obviously this type of infrastructure really attends to those new or smaller assets administrators to properly start and climb the business,” he said.
