Binance Launches VIP Program to Attract High-Volume Traditional Asset Traders
Summary:
Binance, a leading cryptocurrency exchange, has launched a unique initiative aimed at attracting high-volume traders from traditional markets. The scheme enables newcomers to use collective transaction volumes from external platforms to qualify for its VIP Invitation Program. This initiative allows the exchange to engage traditional asset traders and ease their entry barriers into the cryptocurrency market. The offering complements several recent moves by Binance to broaden its user base, including catering to institutional clients and the successful listing of Bitcoin spot ETFs.
In a bid to attract high-volume traders from conventional markets, Binance, one of the globe's leading cryptocurrency exchanges, has announced a unique initiative. The new program lets newcomers employ their collective volume of conventional or cryptocurrency assets from outside trading venues to be eligible for its VIP Invitation Program. With this expansion, unveiled on February 28, Binance brings a first-of-its-kind scheme in the cryptocurrency exchange sector, designed to engage prolific traders of traditional assets.
The scheme promises new platform users, who’ve recorded a 30-day aggregate spot or futures trading volume equivalent to Binance's VIP Program benchmarks, in either cryptocurrencies or traditional assets, an immediate one-level VIP upgrade on the exchange for two months.
Catherine Chen, who leads Binance’s VIP and Institutional segment, highlighted the significant role of the growing acceptance of cryptocurrency in expanding opportunities for users. She pointed out the recent successful listing of Bitcoin spot ETFs and their inflows as an indicator of the clear market appetite for cryptocurrencies, highlighting the narrowing gap between traditional and digital assets. Binance's aim, she said, is to ease the entry barriers for traditional asset platforms' high-volume users into cryptocurrencies.
Simultaneously, Binance has been making efforts to expand its user base by reaching out to specific trader segments. In late 2021, the company finalized a unique banking deal, allowing institutional investors to keep their trading collateral as fiat currency with a third-party partner bank. Since mid-2022, Binance has been running an institutional branch that works with entities like asset managers, brokers, hedge funds, family offices, liquidity providers, and proprietary trading firms.
In a similar vein, the Kraken cryptocurrency exchange recently launched an institutional-focused arm of its platform, following the excitement around the US approval of Bitcoin spot ETFs. Representing a milestone moment for the integration of traditional finance and decentralized finance, the Bitcoin ETF approval led to Bitcoin reaching the $60,000 mark for the first time in over two years, less than two months after the approval.
Published At
2/28/2024 5:01:01 PM
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