Binance, the leading global cryptocurrency exchange, recently announced an update to its VIP invitation program. This new initiative allows new users to qualify for participation by aggregating the volume of their traditional assets or cryptocurrencies from other trading platforms. The updated VIP program, unveiled on February 28th, is the first of its kind offered by a major cryptocurrency exchange, targeting large traditional traders. Participation involves meeting trading volume requirements similar to those existing in the Binance VIP program, enabling new users to be "instantly upgraded" to VIP level for two months.

Catherine Chen, Head of VIP and Institutional Sales at Binance, emphasized the importance of this initiative in the context of widespread cryptocurrency adoption, citing the successful listing of spot ETFs on Bitcoins as a demonstration of growing market demand for cryptocurrencies and reducing the gap between traditional and digital assets. This initiative aims to lower barriers to entry into the cryptocurrency market for large traditional asset users.

Binance is also actively expanding its services for institutional clients, operating an institutional arm for asset managers, brokers, hedge funds, and other major players since mid-2022. In November 2023, the exchange entered into a three-way banking agreement, allowing institutional investors to custody their trading collateral in fiat currency with a third-party banking partner.

Amidst the growing interest in cryptocurrencies, cryptocurrency exchange Kraken also launched an institutionally-focused division of its platform, made possible by the excitement surrounding the approval of Bitcoin spot exchange-traded funds (ETFs) in the US. The approval of spot Bitcoin ETFs marked a significant step towards bridging traditional and decentralized finance, contributing to Bitcoin's price rise to $60,000 for the first time in over two years.