The biggest cryptocurrency exchange in the world, Binance, announced the release of its new Web3 wallet on Wednesday.
The new Binance Web3 wallet is a self-custody wallet that gives users access to a carefully chosen selection of decentralized finance (DeFi) applications along with the ability to do token swaps, yield earning, and staking.
In order to engage in activities like staking, lending, and borrowing, users must first create a wallet using the Binance app.
According to a blog post by Binance, consumers can maintain control over their money using the self-custody wallet.
In order to eliminate the requirement for seed phrase memorization, the wallet will also employ multiparty computation (MPC), which splits a private key into three “key shares,” two of which are managed by the wallet owner.
From the Binance app, users may access the wallet directly and move between DeFi and the company’s controlled exchange.
The Binance exchange purchased Trust Wallet in 2018, and it looks like the new Web3 wallet is in competition with it.
Before the announcement, TWT has had a good week. Monday’s trading for TWT increased from about $80 million to $476 million, partly because Binance listed TWT Futures on its exchange. However, after Binance’s announcement, TrustWallet’s native token (TWT) dropped.
Around the world, Binance has encountered regulatory obstacles. Earlier this year, the Securities and Exchange Commission and the Commodities Futures Trading Commission filed lawsuits against Binance in the United States.
By the end of October, the biggest cryptocurrency exchange in the world also lost two senior executives in the United Kingdom and France.