Leading cryptocurrency exchange Binance has reportedly launched a Bitcoin-pegged token on its native blockchain, Binance Chain as revealed in a blog post on June 17.
According to the announcement on the blog post, the Bitcoin-pegged token will be traded on Binance and its decentralized exchange Binance DEX. The launch of BTCB is part of the exchange’s plans to launch more cryptocurrency-pegged tokens on Binance Chain in future years.
In addition, the post disclosed that the new token BTCB will be 100% backed by Bitcoin, while users will be able to see the reserves as they will be recorded on a public blockchain. Binance also revealed that its choice of pegging the new token to Bitcoin is because it allows for ease of audit, as they will be publicly displayed on the blockchain. It stated:
“The blockchain offers a much easier way to audit a crypto reserve than a traditional bank balance tether.”
BTCB token will be traded on Binance Chain via a BTCB/BTC trading pair which can be transferred to Binance DEX for trading. The exchange revealed:
“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.”
In a similar report, CEO of Binance exchange, changpeng Zhao, tweeted that the exchange was about to move 9001 BTC which is meant to back its new BTCB token
This development comes after Binance earlier in the month of June, blocked access to 29 countries from its decentralized exchange Binance DEX, including the United States and Japan.