Binance Announces Self-Custody Cryptocurrency Wallet
Binance, the world's largest cryptocurrency exchange by trading volume, has announced the launch of its own self-custody cryptocurrency wallet that will operate within its app and enable interaction with the decentralized finance (DeFi) ecosystem.
Self-custody wallets are those in which the user has full control over the wallet. In other words, there is no need to trust a third-party service to manage their transactions and custody of cryptocurrencies.
The company's announcement came during the Binance Blockchain Week conference held in Istanbul, Turkey.
"Millions of Binance users can now explore and experience Web3 without the risk of losing seed phrases or facing complicated integration processes," Binance stated in its release.
The goal of Binance's launch is to allow its users to use the tool to "swap thousands of tokens across more than 30 blockchains." Additionally, the wallet will enable Binance customers to explore decentralized applications (dApps), transfer funds between the exchange and the wallet, and earn returns on digital assets.
"In order to help drive web3 adoption, we have to identify and fill the gaps between centralized and decentralized systems," said Binance founder Changpeng Zhao (CZ). "Binance's Web3 wallet reduces entry barriers for users to gain full self-custody of their assets."
According to the statement, Binance's new wallet will offer "robust" security through the use of multi-party computation (MPC) technology. This technology involves splitting a user's private keys into three smaller parts. This solution is called "key shares."
According to the exchange, this division into three different locations reduces the risk of key compromise while simultaneously reducing system vulnerability. It is still unclear whether exchange users will need to complete the Know Your Customer (KYC) procedure to create a wallet.
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