Binance Launches Web3 Wallet for Its Users

The world’s leading crypto exchange, Binance, announced the launch of its new Web3 wallet at the Binance Blockchain Week conference in Istanbul. The wallet will be available to all users through the Binance mobile app.

To make things easier, Binance’s Web3 wallet is now integrated into the main Binance app mainly used for cryptocurrency trading. The wallet utilizes multiparty computation (MPC) to divide a user’s private keys into three smaller parts, called key shares.

During the launch, Changpeng “CZ” Zhao, CEO of Binance, revealed the intent behind launching the service: “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. Having the key shares split across three locations mitigates the risk of compromised keys and reduces the system’s vulnerability.”

Users will always have control over two of the three key shares, enabling them to achieve self-custody. A Binance spokesperson has confirmed that the Binance Web3 Wallet is not available to US users since Binance.com does not operate in the US.

Zhao has emphasized that Binance’s Web3 Wallet reduces barriers to achieving full self-custody of assets and represents an important and convenient bridge toward DeFi empowerment. According to the crypto exchange, its top priority is ensuring users can explore Web3 with us in a user-friendly and secure environment.

Binance has expanded its services to include other crypto-related offerings. This move comes as their spot trading business appears to be struggling to retain investors.

A blockchain analytics firm 0xScope report revealed that Binance’s spot trading market share had declined to 40% in 2023. The researchers noted that Binance’s spot trading volume has significantly decreased in the past year, which may be due to its listing strategy. Most popular coins experienced a downturn immediately after being listed on Binance.