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November 8, 2023

Binance's New Self-Custody Web3 Wallet: A Game-Changer for DeFi

Ethan Williams
Written byEthan WilliamsWriter
Researched byNikos PapadopoulosResearcher

Introduction

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: A Game-Changer for DeFi

Key Features

  • Binance app integration: Users are required to create a wallet using the Binance app, which serves as the platform for managing and conducting DeFi transactions.
  • Multiparty computation (MPC): The wallet utilizes MPC technology, which involves breaking the private key into three parts. The wallet owner controls two of these parts, eliminating the need to remember complex seed phrases.

Competition with TrustWallet

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.

Conclusion

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.

About the author
Ethan Williams
Ethan Williams
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Ethan Williams, a lively 24-year-old lad from the UK, brilliantly fuses his passion for online casinos with top-notch English localisation, creating bespoke casino guides for Britain's keen gaming lot.

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