Capital Connect: Free Service for Binance VIP Users
All nine levels of Binance VIP users are eligible to join Capital Connect. Binance will not charge fees or commissions for the platform but will benefit from increased trading activity. Catherine Chen, head of Binance VIP and Institutional, explained that investment managers trade on platforms offering deep liquidity, ultimately benefiting Binance.
First-of-its-Kind Platform in the Crypto Space
Drawing inspiration from traditional finance platforms like Edgefolio, Binance aims to create a more efficient solution for high-net-worth clients. Capital Connect is the first of its kind in the cryptocurrency industry, addressing pain points experienced by wealthy customers.
A Small but Significant Portion of Binance's User Base
Although VIP clients represent only a small percentage of Binance's 128 million users, they contribute significantly to the volume and activity across various product lines. Binance will not conduct due diligence on fund managers listed on Capital Connect but will allow only high-quality managers who have completed the company's verification checks.
Restrictions on Capital Connect Access
Capital Connect will not be available to users in the United States and other restricted countries, similar to Binance's main exchange platform.
Binance Continues Expansion Despite Lawsuits
Binance continues to serve millions of customers and launch new products and services despite recent lawsuits from U.S. regulators. The company recently announced that its NFT marketplace would support Ordinals or Bitcoin NFTs. Binance and its CEO, Changpeng "CZ" Zhao, were sued by the U.S. Commodity Futures Trading Commission in March for allegedly operating an illegal exchange and sham compliance program.
