Quick take:
- Binance has launched its first-ever self-custody wallet.
- The wallet is built in collaboration with Trust Wallet and will be offered through the Binance app.
- Binance will use Multiparty Computation encryption to break private keys, enhancing security.
Binance has launched its first non-custodial crypto wallet secured with multi-party computation. The crypto exchange company announced its latest product at the Binance Blockchain Week conference in Istanbul.
The self-custody wallet will work across 30 blockchains and can be accessed via the Binance app or downloaded separately. The wallet is developed in collaboration with Trust Wallet, which Binance acquired in 2018.
Commenting on the reason behind launching the wallet, Binance CEO, Chengpeng “CZ” Zhao said: “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 wallet uses multiparty computation to break private keys into three parts called key shares. Two of the key shares are controlled by the user, enabling self-custody of crypto assets.
“Having the key shares split across three different locations mitigates the risk of the keys being compromised and reduces the vulnerability of the system,” the company said.
The Web3 self-custody wallet is not available to Binance US users according to a representative of the company who spoke to Cointelegraph.
According to CZ, “Binance’s Web3 Wallet lowers the barriers of entry for users to achieve full self-custody of their assets, and it is an important, convenient bridge towards DeFi empowerment. Ultimately, our priority is to ensure users can explore Web3 with us within a user-friendly and protected environment.”
This announcement comes amid an increasing focus on crypto-self-custody services. Several mainstream organisations including BBVA Switzerland, BBVA NewGen, the UK’s Standard Chartered, Germany’s DZ Bank AG, and Paris-based BNP Securities Services have already made forays into crypto custody services.
Self-custody wallets using MPC encryption also remove the fear of losing a seed phrase. “If a user forgets their recovery password AND loses their device/delete the Binance app, they won’t be able to access their Web3 Wallet and Binance will not be able to restore it for them,” Richard Teng, head of regional markets at Binance said in a statement.
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