Binance has Made its First-Ever Acquisition, Acquires Trust Wallet
Binance has made its first-ever acquisition, snapping up a crypto wallet provider. Trust Wallet is a mobile Ethereum wallet that supports ERC20, ERC223 and ERC721 tokens. The acquisition is proof of the importance of secure wallet technology to the exchange, Binance mentioned in a press release. While the details of the deal weren’t made public, reports show that the acquisition was made through cash, the exchange’s BNB token, and Binance stock. The Trust Wallet group will retain its autonomy and will continue to develop the crypto wallet’s services, with Binance assisting in some non-technical areas such as marketing.
A Shared Vision
Launched in November 2017, Trust Wallet is an anonymous mobile wallet and decentralized app browser. The company will continue focusing on delivering its products independently of Binance, but the Malta-based exchange will help with the non-technical aspects such as marketing, Binance revealed in a press release. Led by its founder, Viktor Radchenko, the business has 10 workers and allows its users to store over 20,000 Ethereum-based tokens.
The acquisition by Binance is a godsend for Trust Wallet, according to Radchenko. With his team being composed of developers who are focused on bettering the end user experience, Radchenko mentioned that the acquisition will give Trust Wallet a bigger war chest, helping the business to accelerate its development and enroll new users. He views Binance as a partner which shares “an identical approach towards security and user management.”
While it’s not among the most popular crypto wallets in the market, Binance CEO Changpeng ‘CZ’ Zhao believes that Trust Wallet is “simply the greatest in this category.” In an interview with TechCrunch, he explained Binance as the wallet’s new godfather. We plan to keep the app as independent as possible. There will be more features going into it but not so much from a Binance demand perspective. We are like the addition of a godfather for the baby… there’ll be some cooperation.
CZ further mentioned that the acquisition of the decentralized wallet provider will complement the centralized architecture of Binance. Rather, it stores these details on users devices. Trust Wallet is a decentralized wallet and will not collect users’ personal keys or access their wallets.
The decentralized architecture is one that Binance has been discovering. The decentralized exchange will be known as Binance Chain and can eliminate the usage of a third party in facilitating transactions between users, using an automated process rather. The decentralized exchange will coexist with the centralized one, but with very different approaches to consumer control. While Binance has the ultimate say on how the centralized exchange operates and which coins get listed, the decentralized exchange will not be under its control, and according to CZ, it’ll list almost every coin. The business announced its plans to make a decentralized exchange a few months ago, and development has been ongoing. However, its decentralized nature can make transactions slower and the costs higher, and will probably appeal to traders who value security and anonymity over liquidity and speed.
Just over a month ago, Trust Wallet announced the cancellation of its token sale because of regulatory uncertainty. Its native TST tokens were to have been on sale starting July 10, but the company decided otherwise, citing issues over the regulatory framework governing the issuance of tokens as well as the fear that issuing a token would divert the company’s interest from its core wallet business to keeping a tokenized economy.