According to TechCrunch, cryptocurrency exchange Binance has bought Ethereum Wallet in its first-ever acquisition. The Malta-based exchange operator acquired the Trust Wallet, creator of the onymous Ethereum Wallet which supports Ether, as well as ERC-20 and ERC-223 tokens. The terms of the deal are, however, undisclosed, but according to the report it includes a combination of Binance stocks and tokens.
Binance’s centralised exchange is currently the second largest cryptocurrency in the world. The acquisition of the Trust Wallet reflects that Binance is building a decentralised exchange (DEX), which would run on its own blockchain. Such a platform will allow users to trade without placing them at risks of exit scams and hacks, and without the need of entrusting their funds to a centralised curator.
The Trust wallet might not be among the most known Ethereum wallets. Nonetheless, it has a fair share of 50,000 downloads on Google Play Store. The wallet has a comparable rating on the Apple App Store as well. In an interview of the Binance CEO with TechCrunch, he said that the values of the products of the company and that of the Trust wallet are similar and complementary. He also conveyed that they now have a product for the users who are willing to withdraw funds into a wallet.
He added that the Trust Wallet will continue to function independently. Additionally, the company would be replenishing the administrative and marketing support for the wallet, directly helping the service with promotions and management. With the above services having been taken care of by the Binance team, Trust Wallet’s team would now have more time for their core product offering. They could perhaps work fast on the planned support for cryptocurrencies like bitcoin, EOS and NEO.
Speculations are such that the Trust Wallet will serve as one of Binance DEX’s default wallets. However, it is difficult to say when the platform will go live. Anyway, Binance’s exchange faces a daily trade of $1.3 billion which places it among the top two in the world. The creation of this newly planned exchange is certainly going to add to trading volume on the platform and even push the prices of the BNB token, which does add to the advantages of this move, for Binance.