Binance Intends to Introduce New Stablecoins, One Will Be Binance GBP Pegged to British Pound
- Binance could soon release new stablecoins to the market
- The goal is to offer users the possibility to trade virtual currencies against other fiat currencies
- The recognized and popular cryptocurrency exchange Binance is going to be issuing its own stablecoins in the coming months. This is according to a recent report released by Bloomberg.
- Wei Zhou, the Chief Financial Officer of Binance, explained that the exchange will be issuing its own stablecoins.
Binance To Issues New Stablecoins
According to Wei Zhou, the goal is to create stablecoins and make them available for more of the world’s currencies. Starting in a matter of weeks, the company is going to release its first stablecoins. The first one of them will reportedly be called Binance GBP (BGBP), and it is going to be 100% pegged to the British pound.
Binance is going to be making interest on the deposits that it has to back these digital assets. This is similar to what Tether (USDT) currently does with the digital tokens that it has to back the stablecoin in the market.
The goal is to also launch other coins backed by other currencies with the exception of the US dollar. Zhou said that just some part of the world uses the US dollar but many others prefer to trade with other currencies. However, Binance prefers to be far from regulatory oversight from the United States and regulatory agencies in the country. Indeed, the exchange decided to block US users from using its decentralized platform Binance DEX.
It is worth mentioning that these new stablecoins could help reduce the market share that Tether has on Binance. At the moment, the stablecoin represents 50% of the stablecoin volume on the platform. Tether is the largest stablecoin around the world with a market capitalization of $3.21 billion.
Twitter user CyrptoBatman explained a few days ago that Binance was testing a British pound stablecoin and that it was listed on the Binance platform as BGBP. According to Binance, they have only issued £200 to test it and that the digital currency was created on June 1st.
Chinese exchanges are the main traders of Tether with a market volume of 60% of the total trading around the world. This is equal to $10 billion traded in Chinese platforms. The United States has only registered $450 million in USDT trading.
Notably, Binance is the largest crypto exchange in terms of trading volume and the overall range of product offerings. Available data shows that trading volume on Binance surpassed $1.9 billion in the past 24 hours.