Crypto exchange Binance recently launched its new Web3 wallet for its users. This announcement was made at the Binance Blockchain Week conference in Istanbul, stating that the Web3 wallet will be made available to all users via the Binance mobile app.
The Binance Web3 wallet, which was released for over 150 million Binance users, has been launched within the primary Binance app, providing users with security, accessibility, and support for Web3, and also enabling easy access to dApps, NFTs, and DeFi.
CEO of Binance, Changpeng “CZ” Zhao, revealed during the launch, that the intent behind releasing the new Binance Web3 wallet was to “empower individuals with the ability for self-sovereign finance.” He stated that Web3 wallets aren’t just for storing digital assets and users can utilize it for much more than that.
According to a blog statement from Binance, it stated that Binance launched their Web3 wallet within the primary Binance app, for simplicity, giving users full access to their digital assets and control over their wallets. The wallet uses multiparty computation (MPC), which is used to break a user’s private keys into three smaller parts known as “key shares,” instead of a single seed phrase (or master key). Binance’s multi-party computation protocol splits keys into three locations to mitigate the risk of the keys being compromised and reduces the vulnerability of the system.
The Binance Web3 Wallet is unavailable in the US;, this was confirmed to Cointelegraph by a Binance spokesperson. Binance CEO Changpeng Zhao said the wallet helps lower barriers to self-custody, which is key to DeFi. The wallet aims to be user-friendly and protected.
Richard Teng, head of regional markets at Binance, stated that the MPC removes the risk of losing a seed phrase. Binance’s Web3 Wallet has the company’s trusted security and MPC technology for safety. “We want our users to be assured that they are interacting with Web3 within a secure and protected ecosystem,” he added.
Speaking to Cointelegraph, a Binance spokesperson clarified that users should still safeguard their wallet assets and access. Without the password or their device, users cannot recover their wallets.
Binance’s decision to expand its services comes at a time when its spot trading business is struggling. Data suggests that Binance’s spot trading market share fell to 40% in 2023. The research found that Binance listings have negatively impacted listed token prices.
On the contrary, Korean crypto exchange Upbit saw a significant increase in its spot market share from 5% to 15.3% during the same period. However, CZ’s net worth dropped by 38% due to lower exchange volumes according to the Bloomberg Billionaires Index.
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