Binance users and fans have a reason to rejoice as the leading exchange has recently announced its decision to issue tokens that will be pegged to Bitcoins. These tokens will be issued on Binance’s native blockchain network which we know as Binance Chain. The leading crypto exchange by trading volume shared this update with the crypto community via their official Twitter handle on 17th June 2019. The official blog post was also published on the same day to provide more details.
Which other tokens would you like pegged on Binance chain?https://t.co/aohKP8cRhf
— Binance (@binance) June 17, 2019
Binance also stated that it is just one from the series of cryptocurrency-pegged tokens that it has planned to issue. In fact, more such tokens will follow in the days ahead. Its first BTC-pegged token is titled as BTCB which is a BEP2 token.
The pegged tokens will see a 100% backing by their native tokens so the BTCB token, for example, will fetch 100% backing by Bitcoin, stated Binance. In addition, anyone would be easily able to audit the reserves as the reserve addresses would be published on the public blockchain. It’s a much better way to audit a digital currency reserve than the conventional bank balance tether, said the blog post.
To provide ease of utility, Binance will also be creating a trading pair between the native token and the pegged one, for instance, BTCB/BTC. This trading pair is said to be announced on Binance.com in a couple of days, and a proposal to issue it on the DEX listing will follow very soon.
The primary benefit of the move, as stated in the blog, is that Binance exchange traders will be able to enjoy the availability of multiple coins that are not native on the Binance Chain but already have their own blockchain networks. Moreover, the rise in the token selection choices on the Binance DEX will lead to a growth in both its trading volume as well as liquidity. All of it will eventually add to an overall utility value of the Binance DEX.
Binance, however, does agree to the fact that this move is more centralized in nature than the atomic swaps. But the exchange believes that it will only offer a greater degree of easy utilization to traders.
The post also revealed that Binance has already reserved 9001 Bitcoins and minting of 9001 BTCB has also been completed.
This innovative idea of Binance has been gaining positive attention by Binance fans on the micro-blogging site ever since its announcement.
Literally don't know how it will effect Binance in future but @cz_binance brings up Unique ideas for there users and soo i love his work!
Krep it up with @binance & @Binance_DEX
At the end the thung i know is #BNB will rock In future for sure!😁🚀 https://t.co/fsioTgLTho
— Mohit Agnihotri🇮🇳⚡ (@Mhtcryptobro) June 17, 2019