Binance, one of the biggest cryptocurrency exchanges in the world, and the top exchange for Bitcoin and other digital currencies according to CoinMarketCap, has acquired Trust Wallet to expand its services.

Trust Wallet touts itself as a “best in class mobile Ethereum wallet.” The digital wallet accepts both ERC20 and ERC223 tokens, as well as the main Ethereum, Ethereum Classic and Callisto blockchains. This gives users access to 20,000 tokens built on Ethereum.

Users are provided with a unified wallet address for all of their tokens and cryptocurrencies. This individual address may also be used for ICOs and airdrops, as well as for sending and receiving Ethereum and associated tokens, solving a huge problem for users who own numerous digital assets, each previously requiring a unique wallet address.

Trust Wallet has made a pledge to never access user wallets or private keys. The company has stated that it will also refrain from asking for personal information. While it would be great for the company to hold to those promises, its acquisition by Binance may possibly subject the wallet to KYC and other regulatory requirements.

With Trust Wallet in its portfolio, Binance may now offer its customers an on-chain mobile wallet that could be integrated with its digital currency exchange. With this in mind, the Trust Wallet team will retain autonomy in how it chooses to develop its core product while figuring out how to bring the Binance customer base into its ecosystem, and vice versa.

Binance considers itself to be a technology-driven company. They have suggested that this acquisition shows the importance of secure wallet technology in the future development of cryptocurrency as a whole. While this is true, it is also important to understand the difference between hardware wallets and software wallets. There is a strong argument that hardware wallets provide better security than software wallets like Trust Wallet. Part of the team’s challenge, therefore, will be to constantly develop its security infrastructure and code, and also to convince the public that it represents a secure alternative to its hardware counterparts.

For traders, bringing the Trust Wallet into the fold suggests the possibility for more Ethereum tokens being listed on the Binance platform, as doing so may result in more wallet users. In addition, it suggests that Trust Wallet may also expand its capabilities to include other coins listed on Binance. This may prove problematic in terms of a universal wallet address, but bringing these other coins under the umbrella of the Trust Wallet would provide users with more convenience. In addition, users who typically store their coins on the exchange may not start to move their coins to their individual wallets. While this may reduce Binance’s liquidity, it will also make the platform less susceptible to theft by hackers, meaning that customer funds are better-protected.

With its first-ever acquisition under its belt, Binance maintains its edge on many other exchanges. It has more trading pairs than exchanges like Coinbase, and it has become an all-in-one solution for users who want their trading and wallet services under the same roof.