On the 17th of June, cryptocurrency exchange Binance announced in a blog post a bitcoin pegged token on its native Blockchain. BEP2 token can now be traded on Binance and is also available on Binance DEX, it is one of a series of cryptocurrency pegged tokens which the company intends to launch on Binance chain.
BTCB is 100% backed by bitcoin, Binance further noted that the use of bitcoin in backing assets for the new token makes it more convenient for audits, because the wallets are available to anyone through the public blockchain explorer:
“The blockchain offers a much easier way to audit a crypto reserve than a traditional bank balance tether.”
The token will reportedly be traded against bitcoin, according to the post the creation of cryptocurrency – pegged tokens on the Binance chain would allow users of Binance DEX access tokens which have their own blockchains and are not on Binance chain.
In the announcement Binance further stated:
“While the approach is more centralized than atomic swaps, we believe it provides a higher degree of ease – of – use to most traders. And most traders are already trusting Binance.com to hold their funds anyway.”
Great news right?