Binance to Offer Web3 Wallet With DeFi Access

The centralized crypto exchange has launched a self-custody crypto wallet that allows users to interact with decentralized applications and swap tokens across various networks.

Binance, the world’s largest cryptocurrency exchange by trading volume, will offer its Web3 Wallet, a self-custody crypto wallet that’s built within the Binance app, the company announced on Tuesday.

The product offers a bridge between Binance’s centralized platform and the decentralized finance (DeFi) ecosystem.

Announced during the flagship Binance Blockchain Week conference in Istanbul, Binance said the wallet “aims to meet the demand for a simple, convenient and secure way to experience the world of Web3.”

The company said the onboarding process is simple and doesn’t require users to remember a seed phrase, a complicated necessity for most self-custody wallets. Users can use the wallet to swap thousands of tokens across various networks, explore decentralized applications (dApps) and quickly transfer funds from the exchange to their wallet.

“Much as we believe Web3 will improve the freedom of money around the world, our industry must continue to build tools that onboard and protect users while also reducing friction for them. To help drive Web3 adoption, we have to identify and plug the gaps between centralized and decentralized systems,” said Changpeng “CZ” Zhao, CEO and founder of Binance, in the press release.

“Binance’s Web3 Wallet lowers the barriers of entry for users to achieve full self-custody of their assets and it is an important, convenient bridge towards DeFi empowerment. Ultimately, our priority is to ensure users can explore Web3 with us within a user-friendly and protected environment,” he continued.

The new wallet will compete with freestanding self-custody wallets MetaMask and the Binance-acquired Trust Wallet. Centralized exchanges Coinbase and OKX also offer similar Web3 wallets.