Binance Labs, the venture arm of the Binance crypto exchange, has made a strategic investment in hardware wallet maker Ngrave.
The investment is part of Ngrave's series A funding round that Binance Labs will be leading, Ngrave CEO and co-founder Ruben Merre told The Block. The amount of funding wasn't disclosed.
Ngrave makes a hardware wallet called Zero, which aims to compete with larger providers like Ledger and Trezor. The devices, which secure private keys of crypto assets inside hardware in an attempt to guard users against hacks, can offer what some perceive to be better security than web-based private wallets, including MetaMask and TrustWallet.
Binance Labs said the company is eager to capitalize on the emerging hardware wallet sector and partner with Ngrave, it said in a statement.
The investment comes at a time when hardware wallets are gaining traction among cryptocurrency investors who may want to self custody their assets in a secure manner in the wake of the collapse of centralized exchange FTX earlier this month.
"If anything it is important that people understand the risks associated with keeping their crypto on centralized platforms," Merre said. "The market for hardware wallets is far from a saturated one."
A spokesperson from Trezor, one of the top two hardware wallet manufacturers, told The Block that demand for its product jumped by more than 300% in mid-November. A similar trend was reported by hardware wallet leader Ledger, which told TechCrunch it had the company's biggest sales week in November as well.
(Updates with comment from Ngrave CEO and co-founder Ruben Merre.)
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