The leading crypto exchange in the world does not appear to show any signs of slowing down. Yesterday, on the 17th of June, it had announced that it is going to issue several crypto-pegged tokens on its decentralized exchange, beginning with BTCB, which is a BEP2 token which is actually pegged to BTC.
The BTC-pegged token on the Binance chain
Earlier yesterday, Changpeng Zhao, the CEO of Binance, posted a tweet in which he said that 9001 BTC is soon going to be transferred for a good thing. Naturally, this has caused immediate curiosity among the community’s members, most of which have praised Zhao for his transparency, just like it is always the case.
However, it was not long after the tweet of Zhao that the reason became quite evident. The leading crypto exchange in the world announced its first crypto-pegged token, which is known as BTCB.
BTCB is actually based on BEP2, one which is going to be pegged to BTC. Immediately after this announcement, the crypto exchange gave an explanation that this is the main reason for the 9001 BTC transfer earlier. Also, it clarified that 9001 BTCB tokens have already been minted.
BTCB 100% backed by Bitcoin or BTC
BTCB is going to be 100% supported by BTC or Bitcoin. This announcement also outlined that large buy orders are going to be maintained on the trading pair on Binance.com and that there is also going to be a price spread of 0.1%, therefore providing an easy way for every person to convert from the pegged token to the native token on the primary exchange.
As the official announcement details, crypto-pegged tokens on the Binance Chain will bring several different advantages.
For example, it permits traders on the DEX to actually receive exposure to the coins that have their own and aren’t native on Binance Chain.
In theory, this should also increase the liquidity and the volume, therefore, substantially improve the overall utility value of Binance DEX.
Binance hasn’t excluded decentralized solutions
Moreover, the announcement provides more details saying that this may also offer a higher degree of transparency, in comparison with fiat tethering as is the case of USDT, for instance, as anyone may publicly audit the reserve at any time that they want.
But, the post even says that Binance has not excluded the decentralized solutions like cross-chain atomic swaps, and it also means that they are already developed during the publishing of the announcement.
In the end, Binance has revealed that the BTCB/BTC trading pair is going to be announced within one day or so, on the primary exchange, while at the same time it will issue a proposal for DEX listing too.