Binance, the largest cryptocurrency exchange in the world, offers special accounts of digital asset managers that make it possible to pool the assets of their investors to ensure that the management of crypto funds feel more like a traditional financial experience.
OMNIBUS “fundamental accounts” introduce a universal active value (NAV) by concept unit used by Buyside companies to provide clear and traceable profit and loss of profit for each fund, addressing the absence of a joint market standard in the management of cryptographic assets, Binance said on Wednesday.
Unlike the radified world of high finances, cryptographic trading is still developing from a relatively small retail market in a more institutional environment, a process that requires a transformation of infrastructure.
“Asset management is a very mature and well -established industry in Tradfi,” said Binance, head of the institution and VIP Catherine Chen in an interview. “In Crypto, we believe that there is a lot of demand for this particular expertise and infrastructure, because, for the moment, the entrance barriers and the learning curve remain relatively steep.”
There are painful points for investors and managers, said Chen. For investors, confidence is important, therefore the use of a brand established with clear proof of reserves and a transparent naval are key factors, she said.
Eligible asset managers, which must be authorized in their respective jurisdictions, are no longer faced with such a heavy office of the administrator and other operational tasks, and can create several funds and deploy different negotiation strategies adapted to each fund.
The expected size of asset managers likely to be attracted to the accounts of Binance funds could range from around $ 1 million in management assets (AUM) to the lower end, about $ 20 million, said Chen.
“It will be a mixture. But obviously, this type of infrastructure is really intended for these recent or smaller asset managers to have fun and make the business properly evolve,” she said.
