Binance, one of the world’s largest cryptocurrency exchanges by traded value, has acquired Trust Wallet, an Ethereum wallet that allows mobile users to access decentralized applications that run on the Ethereum blockchain. This acquisition is the first instance in which Binance, which made nearly $500 million in profits, has shelled cash to buy out a smaller company in the blockchain space.
The Malta-based cryptocurrency exchange made the announcement on Tuesday, just weeks after revealing that it is in the works to debut both its own blockchain and an upgraded version of its cryptocurrency.
Terms of the deal were not disclosed, but the company did reveal that Trust Wallet “will retain the autonomy and freedom to develop the core product while benefiting from the increased synergy from Binance, including the broad user base and the upcoming DEX.”
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Trust Wallet, which Binance will be using to bolster its own similar product with other future integration possibilities, is a secure mobile wallet that supports Ethereum, ERC20, ERC223 and ERC721 tokens. It allows users to directly interact with DApps by providing a security-audited system to transact digital assets.
Trust Wallet gives users complete control over their private keys, which are stored exclusively on the user’s device. And with an already existing user base of several million, the opportunities for the wallet’s adoption seem enormous.
Binance CEO Changpeng Zhao told TechCrunch that he plans 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,” he added.
Trust Wallet founder Viktor Radchenko also told the tech industry outlet that he never liked dealing with investors and money people. “Having resources will help us grow quicker and so I can focus on adoption for the users that don’t even have wallets,” he said.