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- Binance has announced the launch of its self-custody wallet that will be integrated into its app and will let users explore over 30 different blockchain networks seamlessly.
- The new wallet throws into question the role of Trust Wallet, a self-custody DeFi wallet that Binance acquired in 2018, even as the TWT token tumbled after the announcement.
Binance has unveiled its self-custody wallet, a significant move towards the support of decentralized finance (DeFi) by the world’s largest crypto exchange.
The new wallet will be integrated into the Binance app and will allow users to interact with over 30 blockchain networks. It was announced at the Binance Blockchain Week conference in Istanbul, Turkey.
#Binance is now your one app for all things Web3.
Our new Web3 Wallet lets you connect DeFi to CeFi in one click.
Try it and let us know what you think.
👉https://t.co/OoxJUABjzU pic.twitter.com/rK3ukNCy8l
— CZ 🔶 BNB (@cz_binance) November 8, 2023
In its statement, the exchange said the wallet allows “millions of Binance users [to]explore and experience web3, without the risk of losing seed phrases or struggling with complicated onboarding processes.”
Commenting on the new product, CEO Changpeng Zhao called it a defining moment for the exchange.
“Web3 wallets represent more than just storing digital assets; they are an integral part of the Web3 framework, empowering individuals with the ability for self-sovereign finance,” he stated.
To help drive web3 adoption, we have to identify and plug the gaps between centralized and decentralized systems. Binance’s web3 Wallet lowers the barriers of entry for users to achieve full self-custody of their assets.
The End of Trust Wallet? A Binance Conundrum
Binance now joins other major exchanges, including Coinbase and OKX, which have self-custody wallets that support DeFi applications. It will also compete with other market offerings, most notably MetaMask, an Ethereum-based wallet that has dominated the market for years.
Curiously, the new wallet will also compete with Trust Wallet, a DeFi-facing wallet that Binance acquired in 2018. The mobile wallet company was Binance’s first-ever acquisition in a cash and BNB token deal. At the time, the two companies claimed the deal would allow Trust Wallet’s team to focus on technical development while Binance handled the finances and marketing.
When asked about what the launch of the new product means for Trust Wallet, Binance declined to respond.
The market has responded, however. In the past 24 hours, Trust Wallet’s native token TWT lost over 7.4% to trade at $1.45 for a market capitalization of $605 million. This is despite a wave of positive movements in the market as Toncoin and 1inch led the gainers at over 10%. TWT has been on an uptrend in the past week, gaining over 60%.
Adding to the conundrum, the blow to Trust Wallet comes barely a week after Binance announced the listing of TWT futures on its platform. This saw TWT’s daily trading volume spike in days to top out at $476 million on Monday before Binance dropped the bombshell.
Despite being a blow to Trust Wallet, the new Binance wallet is an excellent addition to the DeFi ecosystem. It’s, however, only limited to Binance users, leaving some prime territory for Trust and other DeFi wallets to dominate.
