Binance, the largest cryptocurrency exchange by adjusted trading volume, has launched a listing for an XRP-backed digital token, XRP-BF2, on its decentralized exchange, Binance DEX. Issued on Binance’s native blockchain, Binance Chain, the company has minted 10,000,000 XRP-BF2 assets, to date. The total supply has been said to increase along with market demand.
Backed by real XRP assets, the newly launched XRP-BF2 token will essentially allow DEX users “to exchange countless more tokens and cryptos with complete custody over their funds and wallets,” according to an official statement.
Now, all XRP that are issued on Binance Chain will be simultaneously backed 1:1 by native XRP settled in a publicly disclosed address that anyone can monitor at all times. Binance’s CEO, Changpeng Zhao, said,
This swapping experience is being optimized to be as easy as possible. When users withdraw XRP on Binance.com, they can choose either native XRP or the Binance Chain XRP. With no trading involved, it is always 1:1, and there is no spread, no slippage, no fees.
The launch of XRP-BF2 pair will enable users to migrate other coins onto Binance Chain, in which their trading becomes non-custodian, which was not possible earlier.
The XRP-BF2 token is the second crypto-pegged token that is being issued on Binance Chain. Binance’s first Bitcoin-pegged token (BTCB) was introduced in June of 2019, which continues to strive towards ushering freedom of money to the masses. Now, with XRP being listed on Binance DEX, users can expect improved liquidity in the crypto markets coupled with more financial accessibility. The company claims that porting major cryptocurrencies onto the Binance Chain allows the DEX ecosystem to further grow in size. It implies that one can now directly trade BTC on Binance Chain rather than having to go elsewhere.
The primary idea behind introducing cryptos pegged in already existing assets is to turn Binance DEX into a more cohesive market that supports all the major digital currencies. According to the most recent reports, the decentralized exchange records around $1.5M by trading volume in 24 hours. Although the number might seem small compared to most of the major exchanges, DEX, however, leads the pack amongst decentralized exchanges.
It’s noteworthy here that the introduction of XRP-pegged coins on Binance DEX comes just days after Chainalysis, one of the leading crypto analytics firm, announced that they would be adding XRP support within the next three months.