Cryptocurrency exchange giant Binance has unveiled its first-ever Web3 wallet, designed to facilitate interactions with the decentralized finance (DeFi) sector. The announcement was made during the Binance Blockchain Week conference held in Istanbul.
Binance’s new Web3 wallet is engineered to function across 30 different blockchain networks. According to CEO Changpeng ‘CZ’ Zhao, Web3 wallets signify more than just a means of storing digital assets. They are a pivotal component of the Web3 framework, granting individuals greater control over their financial assets and decisions.
This development puts Binance in direct competition with existing Web3 wallet providers like MetaMask and Trust Wallet, the latter of which Binance acquired in 2018. Recently, Binance introduced a futures market for Trust Wallet’s native token (TWT), which led to a 7% price drop within 24 hours.
The Binance Web3 wallet leverages Trust Wallet’s Wallet as a Service (WaaS) technology, designed to simplify the process of implementing Web3 wallets for other companies by offering services like asset management and cross-chain transfers.
Users can create their wallets through the Binance mobile app, which will also serve as a platform for various DeFi activities such as staking, lending, and borrowing. It is not yet clear whether wallet creation will require users to undergo a know-your-customer (KYC) procedure.
Web3 wallets are attractive targets for hackers and malicious actors due to their potential for complete fund drainage when private keys are compromised. Binance aims to enhance security with multi-party computation (MPC), ensuring user-friendly and secure exploration of the Web3 world while eliminating the need to memorize seed phrases.
Binance’s introduction of the Web3 wallet further solidifies its role in the rapidly evolving blockchain ecosystem.