In addition to leading the upcoming Series A round, Binance Labs has made a strategic investment in the Belgian hardware wallet company Ngrave.
With an investment in the cold wallet platform Ngrave, the cryptocurrency exchange Binance is moving into the hardware wallet market.
As of Nov. 21, Binance Labs has led the upcoming Series A round of funding for the Belgian hardware wallet company Ngrave and has made a strategic investment in the company.
Ngrave is a self-custody company that was established in Belgium in 2018. It offers a security suite that consists of three key components: the Liquid mobile app, the connectionless hardware wallet Zero, and the Graphene tool for key backup.
Security continues to be one of the largest obstacles to the adoption of cryptocurrencies, according to Yi He, co-founder of Binance and head of Binance Labs. He added that self-custodial wallets are among the most secure ways to store digital assets and that Binance intends to keep supporting businesses that improve user security.
Binance Labs investment director Tyler Z continued, “Binance Labs is excited to capitalize on the emerging hardware wallet sector and partner with Ngrave to bring sophisticated wallet products to both retail and institutional users.
Ngrave is not the only manufacturer of hardware wallets in the portfolio of Binance Labs. In 2018, Binance Labs made an investment through its incubator program in SafePal, a manufacturer of hardware wallets. Additionally, Binance has been incorporating SafePal’s solution into its platform; in October 2022, SafePal Mini App was added to the Binance app.
Early in November, Binance also established a partnership with hardware wallet manufacturer Ledger, enabling Binance users to transfer cryptocurrency straight from Ledger to their bank cards.
As previously reported, the hardware wallet market has seen rapid development as a result of the current cryptocurrency winter, which has left many centralized crypto exchanges fighting to keep operating. Hardware wallets, as opposed to exchanges, give consumers more control over their money by safeguarding a private key. The crypto hardware wallet sector may soon develop faster than exchanges, according to data from various research published in July.
Changpeng Zhao, CEO of Binance, even acknowledged on November 14 that centralized exchanges would become obsolete as investors shifted to self-custodial options. Centralized exchanges won’t exist or probably won’t need to exist, which is fantastic, according to Zhao. “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, that is great,” Zhao said.
The most recent information comes shortly after Ledger Pascal Gauthier argued that Trust Wallet, a software wallet owned by Binance, must provide the Ledger Connect option in order to offer its users higher levels of security. On November 13, the CEO declared in a tweet, “Otherwise it’s just unsafe.” With the connecting option, Trust Wallet users can essentially store their keys on a Ledger device as opposed to a computer or a mobile device.
A Trust Wallet representative informed Cointelegraph that the platform is preparing to launch the connection with Ledger Connect shortly and that it is one of its top priorities. Furthermore, the official emphasized that Trust Wallet customers have “complete recoverability” of accessing their cash on a chain so long as they recall their secret phrase or private key.