November 8, 2023
Binance has recently launched a self-custody Web3 wallet that enables users to seamlessly interact with the decentralized finance (DeFi) ecosystem. This wallet offers a convenient and secure way for users to engage in various activities such as staking, lending, and borrowing.
Binance's new self-custody Web3 wallet is seen as a direct competitor to TrustWallet, which was acquired by Binance in 2018. Following the announcement of Binance's wallet, TrustWallet's native token (TWT) experienced a decline in value. Prior to this, TWT had a positive week due to Binance listing TWT futures on its exchange. The listing resulted in a significant increase in trading volume, from around $80 million to $476 million on Monday.
Binance's release of a self-custody Web3 wallet provides users with a user-friendly and secure solution for engaging with the DeFi ecosystem. By integrating with the Binance app and utilizing MPC technology, users can easily participate in activities such as staking, lending, and borrowing. However, this new wallet also poses competition to TrustWallet, as evidenced by the decline in TrustWallet's native token value following the announcement. Overall, this development highlights the growing importance of self-custody wallets in the DeFi space and the need for users to carefully consider their options when choosing a wallet for their DeFi interactions.