How private derivatives and cryptocurrency instruments are redefining the strategies of ultra-wealthy investors

The world of ultra-high-net-worth investors is experiencing a critical revaluation moment. After a decade of evolution in the cryptocurrency market, many who missed early opportunities now recognize the need for comprehensive solutions to enter digital assets. Financial institutions, including Binance, are developing specialized offerings that go far beyond traditional exchange-traded funds and provide access to sophisticated investment instruments, including private derivatives and structured strategies.

The problem faced by family offices of ultra-wealthy individuals often appears paradoxical: they have sufficient funds for significant investments in cryptocurrencies, but most traditional banks and asset managers either offer minimal solutions like ETFs or demonstrate uncertainty regarding digital assets. According to a 2025 study by Swiss company Avaloq, wealth managers are experiencing increasing pressure from clients demanding access to crypto assets. In the United Arab Emirates, for example, 63% of ultra-wealthy individuals have changed their advisors or are considering doing so due to inadequate support in digital investments.

A New Approach to Large-Scale Investments

Binance recently introduced Binance Prestige — a specialized service for investors with assets of $10 million and above. It is an extension of the Binance Wealth platform and is designed as a comprehensive solution providing personalized support at every stage of the investment journey.

Catherine Chen, head of VIP and institutional client relations at Binance, highlighted a fundamental obstacle that the new service addresses: “Private banks often say there is no significant demand for cryptocurrencies outside of ETFs. However, this is a vicious circle — traditional asset managers themselves hinder the expansion of offerings by not developing the necessary expertise.”

Practical client service begins with the initial market entry phase. Unlike regular mobile app users, Binance Prestige clients can make large cryptocurrency purchases through direct communication with professional consultants. Each transaction is carefully planned considering the client’s investment profile, portfolio history, and risk threshold.

The process of acquiring cryptocurrencies often involves using complex algorithmic methods. Chen explained that strategies such as volume-weighted average price (VWAP) or time-weighted average price (TWAP) allow breaking large orders into multiple smaller transactions executed at intervals, minimizing market impact and optimizing execution price.

Expanding the Toolkit: From Traditional Management to Private Derivatives

After accumulating a significant position in cryptocurrencies, investors face the challenge of generating income and managing portfolio volatility. This is where more complex financial instruments come into play.

Binance Prestige offers access to Binance Earn for passive income, but the real innovation lies in the use of private derivatives — options contracts and structured products that enable investors to hedge positions while generating income from market fluctuations.

Chen described a typical scenario: “If there is significant volatility in the market, an investor can structure a position to receive coupon income during sideways price movement. At the same time, if the asset reaches a target price, an embedded option can be exercised.” Such structured contracts are a clear alternative to simple bets, especially for professionally managed family office portfolios.

However, the Binance Prestige approach excludes risky areas such as decentralized finance (DeFi). Instead, the focus is on traditional investment instruments adapted to the crypto world. The team is ready to consider a range of complex financial solutions, from volatile options to structured notes, depending on the client’s profile and goals.

Security and Flexibility in Asset Management

As investment volumes grow, the importance of secure storage becomes critical. Family offices have many custodial options reflecting different risk and comfort levels.

Chen outlined the available options: some clients are confident enough in Binance’s infrastructure and ISO standards to store assets directly on the exchange. Others prefer hardware wallets or third-party custody services. For more comprehensive solutions, Binance offers interaction with institutional partners through the SAFU (Secure Asset Fund for Users) program.

For ultra-wealthy clients and family offices, a tripartite banking agreement is available — a custody arrangement where an independent third-party custodian ensures maximum control and transparency. This solution is especially attractive to clients already engaged with private banks within Binance’s banking partner network.

From Accumulation to Succession Planning

An interesting trend Chen observes is the increasing focus on transferring crypto assets to the next generation. Early adopters of cryptocurrencies, who entered the market ten years ago, were often young solo entrepreneurs with minimal assets. Today, these investors are established families with children who are beginning to consider long-term estate planning and capital transfer.

Although the exact development roadmap for Binance Prestige remains confidential, Chen hinted at the possibility of expanding traditional wealth management services, including succession planning and strategic asset allocation across generations. This development direction reflects the evolution of the crypto industry from a speculative frontier to a recognized segment of wealth management.

Thus, the emergence of specialized platforms integrating private derivatives, complex trading strategies, and comprehensive asset management signals a qualitative shift in the maturity of the cryptocurrency market. For ultra-rich investors, this means that the window of opportunity is not closing — it simply requires more sophisticated tools and professional support.