Binance has been taking prominent steps in terms of expanding its services to customers all around the globe. The exchange made another significant announcement earlier today, the launch of tokens pegged against the largest cryptocurrency, Bitcoin [BTC]. Notably, the tokens will not only be pegged to Bitcoin but also to other leading cryptocurrencies. The details pertaining to the other digital currencies are yet to be announced by the exchange.
The exchange said in a blog post,
“We are launching tokens on Binance Chain that will be pegged to leading cryptocurrencies. This will start with a Bitcoin-pegged token that will be traded on Binance and proposed for trading on Binance DEX”
It further stated,
Binance will issue a number of crypto-pegged tokens on Binance Chain (BEP2 token format) in the coming days, starting with BTCB, a BEP2 token pegged to Bitcoin”
The exchange also assured that these tokens are 100 percent backed by its native cryptocurrency “in reserve”, and that they would also be releasing these addresses to the public if anyone wants to review or audit it. Additionally, this initiative will mainly benefit users of Binance’s decentralized exchange venture, Binance DEX, with the noteworthy plus points being increase in trading volume and liquidity.
The blog post further remarked,
“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.”
This aside, the exchange has already taken its first step towards this initiative as it has minted its first Bitcoin-pegged token, BTCB. The exchange stated that it has reserved 9001 BTC and has minted the equivalent amount of BTCB, which will be listed on the platform in the coming days.
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