Binance, one of the world’s largest cryptocurrency exchanges, announced the launch of a new initiative allowing new users to use the aggregated volume of their traditional assets or crypto from external trading venues to qualify for its VIP Invitation Program.
On Feb. 28, the exchange revealed its expanded VIP program, calling it the “first of its kind” offered by a major cryptocurrency exchange that caters to high-volume traditional asset traders.
The incentive allows new platform users to participate with a 30-day aggregate spot or futures trading volume in cryptocurrencies or traditional assets equal to trading volume requirements already existing in the Binance VIP Program.
According to the statement, these users will be “instantly upgraded” to one VIP level higher on the exchange for 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.”
Cointelegraph reached out to Binance for additional information.
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This is one of many initiatives from Binance that reaches out to a niche set of traders to attract a broader user base. In November 2023, Binance completed a tri-party banking agreement, which enabled institutional investors to hold their trading collateral in fiat with a third-party banking partner.
Since mid-2022, Binance has operated an institutional branch for users, such as asset managers, brokers, hedge funds, family offices, liquidity providers and proprietary trading firms.
Fast forward to February, the cryptocurrency exchange Kraken launched an institutional-focused arm of its platform following the hype of the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States.
The approval of spot Bitcoin ETFs marked a landmark moment for bridging traditional finance and decentralized finance. In less than two months since their approval, Bitcoin hit the $60,000 mark for the first time in over two years.