Binance launches its own crypto wallet

The cryptocurrency exchange Binance announced the launch of Web3-wallet, available to users via the platform’s mobile app.

Meet the brand new #Binance Web3 Wallet!

Simple, convenient and secure.

Discover more ?

— Binance (@binance) November 8, 2023

The wallet extension was announced in person by the company’s chief executive Changpeng Zhao at Binance Blockchain Week in Istanbul.

«Crypto wallets are more than just services for storing digital assets — they are an integral part of Web3 infrastructure, giving people the ability to manage their finances themselves», — добавил он.

The utility runs in the main Binance trading app and uses multi-party computation (MPC) technology, which splits private keys into three parts and stores them on different servers.

Two of them are linked to the user’s account, and the third is under the exchange’s control.

Such encryption method reduces the risk of wallet compromise and decreases system vulnerability, the announcement says. According to Binance regional markets head Richard Teng, MPC use removes the fear of losing the seed phrase.

However, if a user forgets their recovery password, loses the device or deletes the app, they will not be able to regain access, Teng said.

«We want our customers to be confident that they are interacting with Web3 within a secure ecosystem. That’s why we integrated MPC technology as well as Binance’s robust security infrastructure into the wallet», — top manager said.

The app is not available to users in the United States.

In the attached documents, it says that the wallet’s terms of use “are governed and construed in accordance with Hong Kong law.” The company says it complies with anti-money-laundering laws and intends to monitor transactions for financing of terrorism, sanctions evasion, and suspicious activity, blocking unwanted transfers.

Against the backdrop of the wallet launch, the exchange’s native token for its Trust Wallet (TWT) also fell 12% in a short period, according to CoinGecko. At the time of writing the coin was trading at $1.46.

Earlier, a Binance Messenger page appeared in the App Store, a launch the company did not announce. Zhao explained that it is a ‘small internal app used for testing’.