- Binance expands its VIP program to traders of traditional assets.
- Users can now qualify with both crypto and TradFi trades.
- Binance enabled TradFi trading last year.
After opening its services to tradFi traders, Binance has taken another step at becoming an all-in-one trading platform. The world’s largest cryptocurrency exchange by trading volume has announced a significant expansion of its VIP Invitation Program.
This initiative opens the doors to high-volume traders from the traditional asset markets to benefit from VIP features.
Binance VIP Program Bridging Traditional and Digital Asset Markets
Binance’s VIP Invitation Program now offers new users trading cryptocurrencies and/or traditional assets on other platforms an unparalleled opportunity to become Binance VIPs. Starting Wednesday, February 28, users can aggregate their spot or futures trading volumes from both spheres to meet the VIP Program’s requirements.
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This initiative signals a growing convergence with traditional financial assets, said Catherine Chen, Head of Binance VIP & Institutional. She also said the program aims to facilitate high-volume traders’ transition from traditional platforms to the crypto ecosystem with minimized barriers.
Binance Launches Tokenized Stock Trading
The VIP program expansion is just a part of Binance’s efforts to cater to traditional traders. On June 3, 2023, Binance introduced tokenized stock trading, merging the traditional stock market with blockchain.
This initiative allows users to trade digital tokens representing shares of popular companies like Apple, Tesla, and Microsoft directly on the Binance platform. This offers several benefits, including trading being available 24/7, which enhances liquidity.
On the Flipside
- Binance’s expansion to tradFi also reflects the platform’s decision to expand into traditional markets, to counter the risks of the volatility in crypto.
- Regulatory compliance is a major issue with tokenized stocks, especially in the US. Notably, in 2023, Binance settled a $4 Billion lawsuit with several US agencies, showcasing the risks in compliance.
Why This Matters
This move expands Binance’s earnings potential and brings the worlds of stock and crypto trading closer together.
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Read more about Binance’s settlement:
Why Binance’s $4.3B Plea Isn’t a Turning Point for Regulation
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