Major cryptocurrency exchange Binance announced BTCB, a bitcoin-pegged token on Binance Chain.
Per the announcement, the newly-released BEP2 token will be traded on Binance and will also be available on its decentralized counterpart Binance DEX. Furthermore, this asset is one of a series of cryptocurrency-pegged tokens which the company intends to launch on Binance Chain.
The post states that BTCB are 100% backed by bitcoin, with the reserves easily visible as they are recorded on the public blockchain. Binance noted that using bitcoin as a backing asset for the new token allows for more convenient audits, as 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.”
On Binance, the token will be traded against BTC, allowing users to exchange BTCB for the native asset to which it is pegged.
The post explains that creating cryptocurrency-pegged tokens on the Binance Chain will give users of the Binance DEX access to tokens that have their own blockchains and are not on the Binance Chain.
Furthermore, Binance says that an increased selection of tokens on the decentralized exchange will result in increased volume and liquidity. Still, the company admits 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.”
In an apparently related tweet earlier today, Binance CEO Changpeng Zhao announced that the exchange was about to move 9,001 BTC. In another tweet he posted hours later, Zhao seemingly confirmed that the transferred funds are meant to back its bitcoin-backed token:
Changpeng Zhao tweet. Source: Twitter
Visit the USSA News store!
Click this link for the original source of this article.
Author: Adrian Zmudzinski
This content is courtesy of, and owned and copyrighted by, https://cointelegraph.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact the USSANews.com administrator by using the contact form located in the top-left menu. Your request will be immediately honored. Please visit https://cointelegraph.com for more terrific, conservative content. The owner of this website may be paid to recommend American Bullion. The content of this website, including the positive review of American Bullion, the negative review of its competitors, and any other information may not be independent or neutral.