One of the world’s largest exchanges, Binance, began developing its own decentralized exchange last year. According to recent reports, users will be able to manage funds on hardware wallets directly from the exchange.
Binance CEO Changpeng Zhao announced that the new decentralized exchange, Binance DEX, will support interaction with hardware wallets from day one. Users will retain full control of their private keys at all times, and those keys will never leave their devices.
Binance DEX will support hardware wallets from day one of launch. So that you can be sure you private keys never leave your device.
— CZ Binance (@cz_binance) January 27, 2019
Zhao did not specify vendors, but it is expected that major manufacturers such as Ledger, Trezor and KeepKey will be supported. This is welcome news for hardware wallet enthusiasts, since funds will not need to be transferred to an exchange wallet before trading on the platform.
Binance is working intensively on developing its decentralized exchange and the Binance Chain. DEX is intended to complement rather than replace Binance’s centralized platform, offering users an intelligent coexistence of features across both systems. Binance’s native token, the Binance Coin, is expected to play a central role in the new ecosystem.
Although decentralized exchanges and their development are still in the early stages, many industry experts see significant potential. DEX platforms may offer a way to avoid certain identification processes required by conventional exchanges. However, regulators have expressed concerns: the U.S. Securities and Exchange Commission (SEC) has warned about possible noncompliance with applicable laws when using decentralized exchanges.
In other developments, Binance recently launched over-the-counter (OTC) trading with a minimum volume of 20 BTC to facilitate faster, simpler transactions for large-volume investors. Shortly before that, Bittrex also opened OTC trading on its platform.
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