Based on a recent report, crypto exchange— Binance has made it known that it will be offering some crypto-pegged BEP2 trading pairs starting with a bitcoin-pegged coin-BTCB. The exchange intends to offer these crypto-pegged coins on its DEX platform.
With this, customers of the exchange will be able to trade using the BTCB/trading pair which will be like that of a pegged token and its own virtual currency.
Binance stated in the report that:
“We are launching tokens on Binance Chain that will be pegged to leading cryptocurrencies. This will start with a Bitcoin-pegged token that will be traded on Binance and proposed for trading on Binance DEX. Binance will issue a number of crypto-pegged tokens on Binance Chain (BEP2 token format) in the coming days, starting with BTCB, a BEP2 token pegged to Bitcoin.”
The exchange further stated that individual crypto-pegged BEP2 token will have the full support of the native digital currency and it (Binance) will also provide the address to the reserve wallet in order for people who are interested to be able to do their own personal audit.
The Chief of Binance, Changpeng Zhao posted a comment on Twitter just a few hours before the announcement of a 9001 BTC transaction generate from the platform’s wallet.
“There will be a transfer of 9001 BTC soon, no need to FUD. It’s for a good thing, details to follow. Waiting for whale_alert.”
Anyone looking to get more details regarding this project will have to check out Binance official link explaining it all.
Although it doesn’t look like the exchange is hiding anything, there is a need to thoroughly investigate fiat-pegged stablecoins especially when a part of the publication states that:
“The blockchain offers a much easier way to audit a crypto reserve than a traditional bank balance tether.”
Expanding Liquidity on the Binance DEX
By introducing crypto-pegged trading pairs, Binance will be expanding the markets for traders on its platform which is expected to help increase liquidity on its DEX platform.