Binance, the largest crypto exchange on trading volume metrics, has rolled out a new feature, drawing support from community members on a rather uncomfortable subject.
Users can designate emergency contacts and crypto heirs, marking a major leap forward in addressing one of the industry’s most uncomfortable but critical issues — digital asset inheritance.
Binance Launches Crypto Inheritance Feature, CZ Urges Industry-Wide Adoption
The update, released in a June 12 platform upgrade, allows users to set up an inheritance application process. Designated beneficiaries can claim assets in the event of a user’s death.
Binance founder and former CEO Changpeng Zhao (CZ) publicly backed the move, urging the rest of the industry to follow suit.
“This is a topic people avoid, but the fact is, humans cannot live forever…Every platform should have a ‘will function’—so that when someone is no longer around, their assets can be distributed to designated accounts according to specified proportions,” CZ posted on X.
For years, the crypto sector has lacked a standardized mechanism to handle inheritance, leaving billions of dollars in limbo.
“…every year, people around the world die in accidents, and over $1 billion worth of crypto assets are inherited by centralized exchanges,” a Web3 community builder noted.
The post alludes to many exchange owners gaining significant wealth from dormant accounts whose users passed away without informing their families or leaving access instructions.
The new feature allows users to submit an inheritance application, ensuring their heirs get the assets they leave behind.
Users welcomed this innovation, acknowledging it as a “very necessary” function. The general sentiment is that platforms must implement a proper mechanism for crypto inheritance.
“Every platform should have a ‘will function’—so that when someone is no longer around, their assets can be distributed to designated accounts according to specified proportions,” CZ wrote.
Still, others argued that the feature does not go far enough. One user pointed out the intangible value tied to a user’s account identity, including followers, published content, and soul-bound tokens (SBTs) that cannot be transferred.
“Personally, I think the most perfect way to inherit an estate is to transfer the entire account to your heir…the same is true for the inheritance and transfer of real estate. The address and house number remain the same, but the person living in it changes,” one user said.
Binance’s Will Feature Aligns With Crypto’s Decentralization Ethos
The update also touches on a broader issue of trust in crypto. Users highlighted that the will or inheritance function is true decentralization because banks hardly release deceased assets.
“People can confidently store value on platforms once they know it is transferable when they will be gone,” another user added.
CZ also noted that current regulations should change to accommodate this shift. More closely, regulatory frameworks should also allow minors to have accounts that can receive funds, but with restrictions on trading.
“Regulatory frameworks should also allow minors to have accounts (they can be restricted from trading, but should be allowed to receive funds),” CZ added.
Such a move would put crypto on par with traditional finance (TradFi), where parents or guardians run a trust fund for their beneficiaries until they reach an appointed time or age.
While Binance is among the first major exchanges to implement a built-in inheritance solution, community members call on others to follow quickly.
In a space where billions in value can vanish with the death of a private key holder, Binance’s move is a timely reminder that the future of crypto depends on innovation and foresight.
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