Binance’s Game-Changing Move: Introducing the Revolutionary Self-Custody Wallet for the Americas

Binance Launches Self-Custody Web3 Wallet, Empowering Users to Engage with DeFi Ecosystem

Binance, one of the leading cryptocurrency exchanges, has introduced a new self-custody Web3 wallet that allows users to interact with the decentralized finance (DeFi) ecosystem. To create a wallet, users are required to use the Binance app, which also serves as a platform for activities such as staking, lending, and borrowing. The wallet incorporates multiparty computation (MPC), a technology that divides a private key into three parts, with the wallet owner controlling two parts. This eliminates the need for users to memorize seed phrases. Binance’s new wallet is seen as a competitor to TrustWallet, which was acquired by the exchange in 2018. Following Binance’s announcement, TrustWallet’s native token (TWT) experienced a decline in value. However, TWT had a positive week prior to this, boosted by Binance listing TWT futures on its exchange, resulting in a significant increase in trading volume.

HSBC, the multinational banking and financial services company, has revealed plans to launch a custody service for tokenized securities aimed at institutional clients. This service, developed in partnership with Swiss crypto custodian Metaco, is expected to go live in 2024. It will complement HSBC’s existing platform for digital asset issuance and its recent offering of tokenized physical gold. Notably, the custody service will not cover cryptocurrencies or stablecoins. Tokenization, the process of issuing and trading real-world assets on blockchains, has gained significant traction among major financial institutions. According to Boston Consulting Group, tokenization could become a $16 trillion industry by 2030.

Grayscale, a digital asset management firm, has seen its investment product tied to Chainlink’s LINK token trade at a 200% premium to spot prices, indicating strong institutional demand. The Grayscale Chainlink Trust (GLNK) closed at $39 on Monday, compared to $21 on October 31. Each GLNK share represents just $12 worth of LINK, making it nearly three times more expensive than the underlying assets. While the product has historically traded at a premium of over 20%, Monday’s premium is the highest ever recorded. LINK tokens themselves have experienced a significant surge of over 76% in the past month.

In the cryptocurrency market, investor focus has shifted from Bitcoin to alternative cryptocurrencies such as Ether. This is evidenced by the narrowing spread between Deribit’s ETH DVOL and BTC DVOL indices, which represent options-implied expectations for price turbulence over 30 days. The spread has decreased from -11.6 on October 23 to -0.6, indicating a growing interest in Ether and other alternative cryptocurrencies.

These developments reflect the ongoing evolution and maturation of the cryptocurrency industry, as major players like Binance, HSBC, and Grayscale continue to introduce innovative products and services. With tokenization gaining momentum and institutional demand for cryptocurrencies on the rise, the future of the digital asset industry looks promising.

Source: CoinDesk

Martin Reid

Martin Reid

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