Binance To Launch Bitcoin-Pegged Token on Binance Chain

by | Jun 18, 2019 | Bitcoin, Cryptocurrency, Cryptocurrency News

Binance | Binance Chain | Bitcoin-Pegged Token | BTCB

Binance, a Major cryptocurrency exchange will soon issue a number of crypto-pegged tokens on its native blockchain, Binance Chain (BEP2 token format), starting off with BTCB, a BEP2 token pegged to Bitcoin, as per a blog post by the exchange on June 17.

As per the post, along with trading on Binance the newly-released BEP2 token will also be available on its decentralized counterpart Binance DEX. Notably, this asset will part of a series of cryptocurrency-pegged tokens, eventually to be launched on Binance Chain.

Reportedly, BTCB will be 100% backed by bitcoin, with reserves easily visible as they are recorded on the public blockchain. Binance further noted that with bitcoin as a backing asset, the new token will allow for more convenient audits because the wallets are available to anyone through the public blockchain explorer:

“The blockchain offers a much easier way to audit a crypto reserve than a traditional bank balance tether.”

The token will be traded against BTC on Binance and will allow users to exchange BTCB for the native asset to which it is pegged. The post went on to elaborate over creating cryptocurrency-pegged tokens on the Binance Chain, asserting that Binance DEX users will get access to tokens that have their own blockchains and are not on the Binance Chain.

Binance further adds that an increased selection of tokens on the decentralized exchange will subsequently increase the volume and liquidity. Though the exchange also admitted that such an approach compromises decentralization:

“While this approach is more centralized than atomic swaps, we believe it provides a higher degree of ease-of-use to most traders. And most traders are already trusting Binance.com to hold their funds anyway.”

Binance CEO Changpeng Zhao, tweeted on 17th June announcing that the exchange was about to move 9,001 BTC. 

A few hours later, Zhao posted a confirmation about the transferred funds are meant to back its bitcoin-backed token:

Binance DEX announced at the beginning of June to block website access to users based in 29 countries, including the United States. The exchange also announced a collaboration with the FinCEN registered-BAM Trading Services Inc., recently, wherein the duo will launch special trading services the United States users. Dubbed as the Binance.US, it is aimed at bringing “security, speed, and liquidity of Binance.com” to users in North America, as stated by CEO Changpeng ‘CZ’ 

Read more: Bloomberg Report: UK Interdealer Broker TP ICAP Will Sell CME’s Bitcoin Futures

Image Source – Binance Twitter

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