Cryptocurrency exchange Binance has announced the launch of its web3 wallet, marking the company’s latest move to capitalize on growing demand for web3 services.

The new crypto wallet aims to provide a simplified way for users to access web3 through integration directly into the Binance mobile app. This allows the millions of existing Binance users to explore decentralized apps, token swapping, yield earning, and other web3 features without needing to manage additional apps or services.

According to a press release, the web3 wallet uses Multi-Party Computation technology to secure users’ private keys without requiring seed phrases, streamlining the onboarding compared to other crypto wallets that utilize seed phrases.

Binance CEO Changpeng Zhao said:

“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,”

Binance highlighted the wallet’s features like cross-chain swapping, yield earning, and dApp exploration, indicating the product is targeted at both crypto beginners and experienced traders. The press release expressed that the goal is to “lower the barriers of entry for users to achieve full self-custody of their assets.”

The launch comes as the crypto market continues to mature, with major companies making moves to be leaders in the emergent web3 space. While crypto adoption is growing, many consumers still find web3 technologies complicated to use.

Binance’s vast user base gives the web3 wallet launch a built-in audience. The company will be hoping that integration with its centralized exchange and brand recognition will persuade users to try the new offering.

Competitors in the crypto wallet space include MetaMask and Coinbase Wallet. It remains to be seen whether Binance’s web3 wallet will gain significant traction among users who already have experience with other wallets.