Binance launched a new VIP offering aimed at the ultra-high-net-worth market segment on Wednesday. Binance Prestige addresses the specific needs of family offices, private funds, and other asset allocators seeking a high-touch, professional approach to digital asset management.
The new service complements Binance Wealth, which launched about a year ago to cater to advisors and wealth managers for the mass affluent market. Catherine Chen, head of Binance VIP and Institutional, said the service will likely cater to investors with as much as $10 million in assets at their disposal.
There is no set minimum size of asset holding required to qualify for Binance Prestige. The level broadly aligns with the funds required to open a private banking account. Chen said family offices and investors with traditional backgrounds are very curious about crypto and expect the type of support and services they get in traditional finance.
A repeated pain point for wealthy yet cautious investors is having to jump through multiple hoops to become a crypto client, rather than being guided directly with the type of hand-holding these investors expect. Over half of wealth management professionals now see digital assets as key for client engagement, up from 44% last year, according to an Avaloq survey.
Binance currently provides special VIP Holder accounts, which investors qualify for by having over $500,000 to trade on the exchange and an appropriate number of BNB tokens. Within the VIP Holder account system are four categories, with four being the highest net worth.
Binance Prestige builds on that highest net worth VIP bracket with six core service pillars to provide comprehensive end-to-end coverage. These include onboarding, fiat access, structured products, capital financing, custody, insights, and reporting, according to Wednesday's press release.
The exchange is also looking at how areas like inheritance planning could be incorporated within the Binance Prestige service. Chen said the goal is to strike a balance, noting that while Binance offers high-touch service, it is still not a bank.
Helping wealthy clients as they begin investing in crypto, particularly in places like Asia or the Middle East, has become one of the fastest-growing segments within the digital asset industry.