Binance launches its own self-custody Web3 wallet

Binance's new Web3 wallet will compete with the likes of MetaMask and Trust Wallet, the latter of which was acquired by Binance in 2018. The company said it will work across 30 blockchain networks.

Officials from Binance said that 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.

The technology behind the product

This Web3 wallet incorporates Trust Wallet's Wallet-as-a-Service (WaaS) technology, designed to reduce the development time for businesses aiming to launch Web3 wallets. The product provides various services such as asset management and cross-chain transfers, streamlining the process for companies entering the Web3 space.

Users can create a wallet through Binance's mobile app, which will also serve as the venue for DeFi activities like staking, lending, and borrowing. It is currently unclear whether users will have to complete a know-your-customer (KYC) procedure to create one.

Safeguarding user funds with multi-party computation

Web3 wallets are common targets for hackers and exploiters, as once a private key is obtained by a hacker, all funds can be irreversibly drained.

Binance hopes to remedy that with multi-party computation (MPC), which removes the need for users to memorise seed phrases without compromising the benefits of security and self-custody. MPC involves a private key being broken up into three parts called key shares, with two of the three key shares being controlled by the wallet owner.

Ultimately, Binance’s priority is to ensure users can explore Web3 with us within a user-friendly and protected environment, company officials added.

Previous news from Binance

In October 2023, Binance has announced that it stopped accepting new clients in the UK following a regulatory decision that halted its marketing efforts in the country.

The UK Federal Conduct Authority’s strict regulations, designed to enhance consumer protection after digital asset price declines and company failures like FTX, led to this decision. Only authorised companies are allowed to advertise cryptocurrencies in the UK, with non-compliance risking substantial fines and up to two years of imprisonment. In the initial week of enforcement, the FCA issued over 150 alerts regarding unauthorised crypto promotions.