Leading cryptocurrency exchange Binance is planning to issue its own stablecoins in the upcoming two months, as reported by Bloomberg on June 5.
Wei Zhou, Binance’s Chief Financial Officer told Bloomberg that “in a matter of weeks to a month or two,” the exchange will start issuing its own stablecoins focussed at making stablecoins available for more of the world’s currencies.
Dubbed “Binance GBP”, it will be the exchanges’ first stablecoin and be denominated in and 100% pegged to the British pound. Zhou further revealed that similar to Tether’s strategy for USDT, Binance will also make money off of interest on fiat deposits.
Binance is reportedly planning a host of other stablecoins backed by other currencies, except the U.S. dollar. Zhuo elaborated over the company’s decision, that “from the users’ perspective, only certain portions of the world use the dollar. Other users use other currencies, and we feel it should be reflected in stablecoins as well.”
Purportedly, Binance’s native stablecoins will reduce tether’s market share on Binance that currently represents over 50% of stablecoin volume on the exchange. The news about Binance testing first surfaced on June 4, when CryptosBatman, a Twitter use observed a listing of “$BGBP” on the Binance platform.
Changpeng Zhao, the CEO of Binance later commented on the tweet confirming that a pound stablecoin is in the testing phase, with only £200 minted.
Image Source – Pixabay.com