Binance buys Crypto-Wallet Company
Binance, one of the world’s biggest cryptocurrency exchanges, has made its’ first-ever acquisition with the purchase of Trust Wallet. The Malta-based exchange will seek to give customers more control over their digital coins with their purchase of the crypto wallet.
Trust Wallet is a crypto-wallet provider and decentralized-application browser that doesn’t collect a lot of user data. The company launched in November and currently has 10 employees, allowing customers to store more than 20,000 different Ethereum-based tokens.
“The users control 100 % of their funds,” Binance Chief Executive Officer Zhao Changpeng said in an interview Tuesday. “Now we have both a decentralized and centralized solution for custody.”
Trust Wallet doesn’t access user wallets or hold private keys, the codes that let investors spend their coins, Binance said. Instead, the keys are stored on user devices. The firm may collect customers’ public-wallet addresses, contact information and social-media handles, according to its website. Trust Wallet said in June that it was cancelling its planned token sale due to legal risks.
“The company has built a reputation for security and has held itself to the guiding principles that it will never access user wallets, hold private keys, and ask for personal information,” the Malta-based company said in the statement. “The Trust Wallet brand and team will retain the autonomy and freedom to develop the core product while benefiting from the increased synergy from Binance.”
Binance also recently announced its investment in Malta-based Founders Bank and is currently waiting for regulatory approval.
The deal was not highly priced and Trust Wallet does not have a lot of users, Zhao said. Binance is in early-stage talks with a few other acquisition targets, he added.