Binance Introduces New Bitcoin-Pegged Token On Its Blockchain Network, BTCB
- Binance creates a new Bitcoin-pegged token on its Binance Chain
- The token is going to offer solutions to users that want to transact Bitcoin on Binance DEX
The recognized cryptocurrency exchange Binance has launched a new Bitcoin-pegged token on its Binance Chain. The goal is to have this token traded on the Binance DEX, the decentralized exchange handled by Binance. This is going to be one of the firsts crypto-pegged tokens on Binance Chain through the BEP2 token format. The new token is going to have the ticker BTCB.
Binance Launches Bitcoin-Pegged BEP2 Token
In a recent statement released by Binance, they informed that they will be issuing a number of crypto-pegged tokens on the Binance Chain. One of them is going to be backed by and pegged to Bitcoin. As the exchange explains, the reserve addresses are going to be published for anyone to audit, which is much easier for users to trust and audit than bank accounts such as the ones that Tether (UST) or other stablecoins have.
Binance will also create a trading pair on Binance.com that will be BTCB/BTC for users to exchange the token for Bitcoin.
About it, the company mentioned:
“If this buy order is filled, a new order will be placed while an equal amount of funds will be deposited from the reserve address into Binance.com. The sum of the buy order and the funds on the published reserve address will be bigger than the total supply of the pegged token, ensuring there is always 100% backing.”
Some of the main benefits include the possibility to make Bitcoin available on the Binance DEX. Bitcoin is not a native asset of the Binance Chain, this is why the coin needed to be pegged to a specifically created token on the Binance blockchain. The company expects the liquidity and trading volume on the DEX to increase as new trading pairs are added on the platform.
Binance considers that this approach is more centralized than atomic swaps but it provides an easier-to-use method for most of the traders in the market. Most of the investors are already using and trusting Binance.com, which is something that helped the exchange take the decision to launch this token.
Binance has also informed that they will be doing their best job in order to facilitate a pegged/native pair for other coins listed on Binance.com. However, they informed that this is not guaranteed.