Binance, arguably the world’s largest cryptocurrency exchange by volume, has made its first public acquisition by buying a US-based startup, a mobile ethereum wallet “Trust Wallet”, which will give customers more control over their digital coins.
The Trust Wallet team shares the same values as us and the products are very complimentary. For users who like to withdraw funds into a wallet now we have a product, they can use. CEO, Binance
As per Binance CEO “Wallets are the most fundamental interface to the crypto economy and a secure and easy-to-use wallet is key to proliferate the adoption of cryptocurrencies”. This acquisition will enable Binance to add a mobile wallet to its services, at the same time Trust Wallet will be able to get top marketing and could tap into other advantages offered by the exchange, which include both its existing user base and a proposed decentralized exchange.
According to the policy, Trust Wallet doesn’t access user wallets or hold private keys, the codes that let investors spend their coins. Instead, the keys are stored on user devices. The company may collect customers’ public-wallet addresses, contact information, and social media handles. Binance CEO Changpeng Zhao told in an interview.
They haven’t done much marketing which is where we can help. They are strong technically but don’t like doing marketing, HR etc… now merging with us they don’t have to worry about money, We’re looking for strong tech teams. The acquisition will be a very key component to continuing to grow and contributing to this industry
The trust wallet
Launched in November 2017, U.S.-based Trust Wallet is an open source, crypto Wallet provider and decentralized application browser that supports Ethereum (ETH) and over 20,000 different Ethereum-based tokens (ERC20, ERC223, and ERC721).
We want to keep Trust Wallet as an independent brand and product. It’s still the team’s baby. We are like a godfather. In fact, we plan to move more services to Trust Wallet, such as tight integration with our decentralized exchange Binance Chain
Compensation of the deal
The compensation is a mixture of cash in the form of fiat currency, Binance stock and a portion of its BNB token. U.S. based Trust Wallet will remain independent following the deal, but Binance, which is headquartered in Malta these days, will assist running the admin side of the business and in non-technical areas like marketing. Trust Wallet will remain autonomous in most of its operations.
As the details of the deal were not disclosed but part of the decision to acquire Trust Wallet comes from the fact that the platform does not request user data or other private information. As a result, the platform “has built a strong reputation for security,” Trust Wallet founder Viktor Radchenko said that the reason he started the project was that he felt a need for an open-source ethereum wallet to form part of the infrastructure helping other developers build decentralized applications going forward. He said;
I’m a product person and developer. I spend my time thinking about solving problems for the end-user. I never liked dealing with investors and money people, it is so much hassle,Having resources will help us grow quicker and so I can focus on adoption for the users that don’t even have wallets.Founder, Trust Wallet
Trust Wallet founder Radchenko said that now his main focus will be on growing the developers team immediately from five developers right now to 10. He further said that the app is currently focused on Ethereum and Ethereum-based tokens, but the plan is to add support for other blockchains including Bitcoin, EOS, NEO. Trust Wallet will also be one of the default wallets supported by Binance’s upcoming decentralized exchange, which will remove the shackles of a decentralized exchange and allow users to trade directly with one another.
CEO of Binance also shed light on growing in volume and also looking for other acquisitions like buying the Trust Wallet, this deal was not highly priced and Trust Wallet does not have a lot of users. Binance is in early-stage talks with a few other acquisition targets.