Binance is one of the largest cryptocurrency exchanges in the world. It just completed its first ever acquisition.
Binance bought out the mobile wallet firm Trust Wallet. The company is a mobile app that is essentially an Ethereum wallet that supports Ethereum, ERC20, ERC223 and ERC721.
As of now, Binance has not disclosed the amount it paid, but according to TechCrunch, the payment included a mix of cash, Binance tokens and Binance stock. Interestingly enough, TechCrunch reported that the US-based mobile wallet will remain sort of an independent company even after the acquisition takes place. Binance will assist its new acquisition company by providing help “on the side”, like marketing and general guidance.
The CEO of Binance commented that they would like to keep the mobile app as independent as possible, just assisting Trust Wallet in the best possible way to provide a quality product to those customers who withdraw funds into their personal mobile wallets. He added that the services the two companies provide are quite complementary in nature, so the partnership is going to be a win for both parties.
Trust Wallet is, according to Binance’s CEO, one of the strongest companies out there in terms of the service they provide. However, due to the fact that they are not so experienced in HR, marketing and PR in general, they are not getting the “buzz” as some other companies do. Now, with the merger, Binance will be able to provide Trust Wallet with the necessary business skills and boost the company’s outreach.
Binance is going out for strategic acquisitions, it seems. The founder and CEO, Changpeng Zhao, announced that Binance will be creating a $1 billion-fund targeted towards strategic acquisitions and growth. It seems that Trust Wallet is the first in line to get snapped up by Binance in their road to expansion and product growth.