Binance to issue bitcoin-pegged token on Binance Chain

Cryptocurrency exchange Binance has announced that it is going to issue a number of crypto-pegged tokens on Binance Chain, its proprietary blockchain platform launched in April.

In an online post dated June 17, Binance said that the first such token to be issued will be BTCB, a BEP2 token pegged to Bitcoin. It explained that pegged tokens are fully backed by the native coin in reserve with reserve addresses published for anyone to audit.

As such, BTCB will 100% backed by bitcoin (BTC). Binance said it will create a trading pair on its platform between the pegged token and the native coin, BTCB/BTC in this case.

These crypto-backed tokens would also be available on Binance DEX, Binance’s decentralized exchange. Binance said that through these tokens, DEX traders will have access to several coins that have their own blockchains and are not native on Binance Chain.

“With the increase in the selection of tokens available on Binance DEX, there should be an increase in trading volume and liquidity, This would further increase the utility value of Binance DEX,” it added.

“While this approach is more centralized than atomic swaps, we believe it provides a higher degree of ease-of-use to most traders.”

Binance said that it has reserved 9001 BTC and minted 9001 BTCB, adding:

“A trading pair on Binance.com for BTCB/BTC will follow in a day or so, and we will issue a proposal for DEX listing as well.”