Binance Announced Bitcoin-Pegged Token (BTCB) on Binance Chain

Binance will launch tokens on Binance Chain that will be pegged to leading cryptocurrencies, starting with a Bitcoin-pegged token (BTCB) that will be traded on Binance and proposed for trading on Binance DEX.

Binance, the world’s largest cryptocurrency exchange by volume,  will issue a number of crypto-pegged tokens on Binance Chain (BEP2 token format) in the coming days, starting with Bitcoin-Pegged Token (BTCB).

“Pegged tokens such as BTCB, are 100% backed by the native coin in reserve, which is Bitcoin (BTC) in BTCB’s case,” according to the company’s blog on Medium. “The reserve addresses are published for anyone to audit. The blockchain offers a much easier way to audit a crypto reserve than a traditional bank balance tether.”

Binance CEO tweeted prior to the announcement:

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. — CZ Binance (@cz_binance) June 17, 2019

The company has just reserved 9001 BTC and minted 9001 BTCB (you can see it in the Explorer here). For BTCB, the BTC-pegged token on Binance, the BTC reserve address is: 3LYJfcfHPXYJreMsASk2jkn69LWEYKzexb

“The main benefit of offering crypto-pegged tokens is that, obviously, this makes available to Binance DEX traders the many coins that have their own blockchains and aren’t native on Binance Chain,” according to the blog post. “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.”

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

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