Cryptocurrency exchange Binance is entering the hardware wallet industry. Hardware wallets (cold wallets) are safer than wallets connected to the Internet in the form of trading cryptocurrency using physical devices such as USB.
Binance announced on its blog on the 21st (local time) that its venture capital subsidiary Binance Labs has made a strategic investment in Belgian hardware wallet company Ngrave and will lead Ngrave’s Series A round investment.
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Founded in 2018, EnGrave is a company specialized in self-custody (direct virtual asset consignment and consignment work) along with portable hardware wallet Zero, backup tool Graphene, and wallet app Liquid.
Yi He, co-founder of Binance and CEO of Binance Labs, pointed out that security is the most important in the cryptocurrency market. “Self-custody wallets are one of the safest ways to store virtual assets,” he said. “We are trying to support projects that strengthen security.”
Analysts say that the frozen cryptocurrency market situation due to the FTX crisis will affect the growth of the hardware wallet industry. Unlike wallets on centralized cryptocurrency exchanges, hardware wallet users can safely manage assets using private keys. According to research data released in July, the hardware wallet industry is expected to grow faster than the cryptocurrency exchange in the near future.
Changpeng Zhao, CEO of Binance, explained, “If most customers manage their assets safely and easily with self-custody, there is no need for a centralized cryptocurrency exchange to exist anymore.”