The world’s biggest cryptocurrency exchange, Binance, has announced the launch of a new program that enables new users to become eligible for its VIP Invitation Program based on the total volume of their traditional assets or cryptocurrency from outside trading venues.The enlarged VIP program was unveiled by the exchange on February 28. It was dubbed the “first of its kind” by a major cryptocurrency exchange serving high-volume traditional asset traders.In order to qualify for the incentive, new platform users must meet the trading volume requirements of the Binance VIP Program, which are equivalent to a 30-day aggregate spot or futures trading volume in cryptocurrencies or traditional assets.These users will, per the announcement, be “instantly upgraded” to a VIP level higher on the exchange for a period of two months.
Catherine Chen, the head of Binance VIP and Institutional, commented that the evolution of crypto mainstream acceptance has played a big role in expanding user opportunities. “The successful listing of bitcoin spot ETFs and their inflows not only demonstrates that there is clear market demand for cryptocurrencies, it also shows any gap between traditional and digital assets is closing.”
Chen said the exchange aims to help “high-volume users of traditional assets platforms reduce their entry barriers to cryptocurrencies.”
This is just one of Binance’s many efforts to reach out to a specific group of traders in an effort to draw in more users. With the completion of a tri-party banking agreement in November 2023, Binance made it possible for institutional investors to hold their trade collateral in fiat with a different banking partner.For users including asset managers, brokers, hedge funds, family offices, liquidity providers, and proprietary trading businesses, Binance has been running an institutional branch since the middle of 2022.Fast-forward to February. Amidst the excitement around the US government’s approval of spot Bitcoin exchange-traded funds (ETFs), cryptocurrency exchange Kraken introduced a section of its website targeted at institutions.
An important step in bridging traditional finance with decentralized finance was the adoption of spot Bitcoin ETFs.For the first time in more than two years, Bitcoin reached the $60,000 threshold in less than two months after its certification.