CZ’s call for ‘self-custody’ means this for Binance and its future

The world’s largest exchange, Binance, announced an investment that seems rather odd. This was especially that it may draw users away from the platform.

Binance Labs, the chain-agnostic incubator and the venture capital arm of Binance, revealed a strategic investment in hardware wallet maker NGRAVE. Furthermore, the investment looks to be an attempt to capitalize on renewed calls for self-custody in the industry. 

Greater push for self-custody

Recent developments in the crypto market have led to a distrust of centralized exchanges. The crypto community has been trying to wrap its head around the downfall of FTX. This has most certainly left several crypto firms struggling in its wake. 

Suspension of withdrawals on multiple exchanges and crypto lending platforms, including BlockFi and Genesis, have given a bad rep to centralized platforms. “Not your keys, not your crypto” was a phrase that was first popularized during Celsius Network’s bankruptcy proceedings. This basically meant that ownership of crypto was essentially taken away once an investor transfers them to a centralized exchange. 

This sentiment witnessed a dramatic reaffirmation following FTX’s collapse, which prompted liquidity issues for several other crypto firms. Retail investors who fell victim to sudden withdrawal suspensions are turning towards cold storage for their crypto. These include hardware wallets, especially in light of recent events.

NGRAVE’s deal with Binance

NGRAVE is a Belgium-based blockchain and digital asset security provider that offers hardware wallets for crypto holders. According to the blog post by Binance, the exchange will lead the wallet maker’s Series A funding round. The exact amount of investment has not been disclosed. Yi He, the co-founder of Binance and Head of Binance Labs, said,

“Self-custodial wallets are one of the most secure methods for storing digital assets and through our investment in NGRAVE, we are looking to continue backing innovative startups that enhance user security.”

Binance Chief Changpeng Zhao took to

“Self custody is a fundamental human right. You are free to do it at any time. Just make sure you do do it right.”

With the NGRAVE deal, Zhao’s firm is now ready with a “right way” for its users to access cold storage for their crypto. 

CZ joins Buterin’s vision for safe CEX

Ethereum co-founder Vitalik Buterin shared a vision for a safe centralized exchange (CEX) on twitter last week. This would feature cryptographic proof of on-chain funds, in addition to proof of solvency. Changpeng Zhao responded to Buterin’s tweet, indicating that he was working on the idea.