First of Many? Binance Launched Bitcoin-Pegged Token on Binance Chain
Matthew Lam Jun 18, 2019 06:00
A Bitcoin stablecoin is coming? On 16 June, Binance announced that a Bitcoin-pegged token will be launched on Binance Chain and proposed for trading on Binance DEX.
A Bitcoin stablecoin is coming? On 16 June, Binance announced that a Bitcoin-pegged token will be launched on Binance Chain and proposed for trading on Binance DEX.
Dubbed as BTCB, the Bitcoin-pegged token will be the first of many crypto-pegged stablecoins launched in coming days, Binance said. These crypto-pegged tokens are fully backed by the native coin in reserve and the reserve addresses are publicly available for auditing. Binance claimed that the sum of buy orders and funds on the published reserve address will be larger than the total supply of pegged token, thus ensuring the tokens are 100% backed.
According to Binance, the main benefit of crypto-pegged tokens is enabling access to Binance DEX traders that have their own blockchains and aren’t native on Binance Chain. While more tokens are available for trading in Binance DEX, the utility value of Binance DEX will increase due to the surging trading volume and enhanced liquidity.
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