Binance Launches Subsidiary Accounts to Benefit Institutional Investors

The cryptocurrency exchange behemoth, Binance, has finally launched their long-anticipated subsidiary accounts feature for institutional investors and high-tier individual traders. This new feature brings Binance one step closer to offering institutional investors the comprehensive, full-stack offering they expect.

According to the official Binance Medium post, by offering subsidiary accounts, institutional account holders will now benefit from improved managerial control and asset auditing tools.

Main Account & Sub-Accounts

Entities meeting institutional level status will can set up a maximum of 200 sub-trading accounts controlled by the original/main, “master” account. The main account will have sole control over the movement of assets within the sub-accounts and can grant different access levels and set permissions for each account.

Each sub-account has its own set of API limits which enables account holders to trade with more freedom. It also prevents accounts from being bogged down by a limited trading capacity and thus allows for a better trading experience.

As for the sub-account security, Binance takes this seriously and has created individual tabs to set security parameters such as passwords, 2FA, ownership, and other security features, for each sub-account.

As stated in Binance’s Medium post:

Security is a core principle of our firm, and this principle also underlies the design of this new feature. Account login information has been properly subdivided to maximize security and minimize risk.

When explaining the differences between the master account and the sub-accounts, Binance provided a table summarizing the abilities of the main “master” account.

It stated that the master account can:

  • View all data and balances of the sub-accounts
  • Transfer funds in between accounts
  • Maintain full managerial control
  • Delete all APIs
  • Cancel all orders
  • Freeze or unfreeze sub-accounts

To enjoy the benefits of the above features, only corporate accounts and individual users with VIP tier 3 status or above can control a master account with a maximum of 200 sub-accounts.

Also, regarding the VIP tiers and their associated discounts, Binance explained that:

VIP tiers will be calculated on an aggregate basis, and corresponding discounts will be applied to all sub-accounts.

Final Thoughts

Despite the long and brutal cryptocurrency bear market, Binance has been working hard to build-out the exchanges foundation and provide better products and services.

For instance, Binance recently announced the launch of their own blockchain dubbed “Binancechain,” which will host “millions of coins and thousands of blockchains.”

Additionally, over 450,000 accommodations accept the exchange’s very own cryptocurrency BNB thanks to a strategic partnership with Tripio.

All in all, Binance continues to move forward with new developments and exciting announcements. It appears they are preparing for the next big wave of cryptocurrency investment. However, when that time will come, nobody knows for sure.

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