Binance Makes Moves in Hardware Wallet Industry – The venture capital arm of the cryptocurrency exchange Binance is making a move into the hardware wallet sector by investing in the cold wallet platform Ngrave. This move marks the beginning of Binance’s entry into the hardware wallet industry.
According to an announcement issued by Ngrave on November 21st, Binance Labs has made a strategic investment in the Belgian hardware wallet company Ngrave and will lead the company’s next Series A round of funding.
Ngrave is a company based in Belgium that was established in 2018. The company focuses on self-custody and offers a security suite that is composed of three core components. These components are the connectionless hardware wallet Zero, the key backup tool Graphene, and the Liquid mobile app.
Yi He, one of the co-founders of Binance and the head of Binance Labs, identified security as one of the primary obstacles standing in the way of widespread cryptocurrency adoption. ‘Self-custodial wallets are one of the most safe means for keeping digital assets,’ he said, adding that Binance is keen to continue financing firms that boost user security. ‘Self-custodial wallets are one of the most secure methods for storing digital assets,’ he added.
Binance Makes Moves in Hardware Wallet Industry
Binance Labs investment director Tyler Z added that the company was excited to capitalise on the emerging hardware wallet sector and partner with Ngrave to bring sophisticated wallet products to both retail and institutional users. “Binance Labs is excited to capitalise on the emerging hardware wallet sector,” he said.
Binance Labs’ portfolio includes more than one vendor of hardware wallets; Ngrave is not the first. Through its incubation programme, Binance Labs has previously made an investment in the manufacturer of hardware wallets known as SafePal in 2018. Additionally, Binance has been incorporating SafePal’s solution into its platform, and in October of 2022, the SafePal Mini App will be included in the Binance app.
Additionally, at the beginning of November, Binance formed a partnership with the company that makes the Ledger hardware wallet. This partnership enables Binance users to transfer cryptocurrency through Ledger directly using their bank cards.
The continuing cryptocurrency winter has, as was previously reported, spurred the expansion of the hardware wallet business, while many centralised cryptocurrency exchanges were trying to sustain operations. Hardware wallets are used to store cryptocurrencies offline. Hardware wallets, in contrast to exchanges, provide consumers more control over their own cash by encrypting a private key. The findings of many studies that were published in July suggest that in the not-too-distant future, the market for cryptocurrency hardware wallets may expand at a rate that is greater than that of exchanges.
Binance CEO Changpeng Zhao even remarked on November 14 that centralised exchanges would not be required in the future because investors would gravitate to self-custodial alternatives. “If we can have a way to allow people to hold their own assets in their own custody securely and easily, that 99% of the general population can do it, centralised exchanges will not exist or probably don’t need to exist, which is great,” Zhao said. “If we can have a way to allow people to hold their own assets in their own custody securely and easily, that the general public can do it.”
The most recent development comes only a short time after Ledger Pascal Gauthier stated that Binance-owned software wallet Trust Wallet must provide the Ledger Connect option in order to give its users with a higher level of protection. In a tweet dated November 13, the company’s chief executive officer stated, “Otherwise it’s plain hazardous.” Users of Trust Wallet now have the option to keep their private keys on a Ledger device as an alternative to storing them on a mobile phone or a computer. This is made possible via the linking option.