As per the announcement, the newly-launched BEP2 token would be traded on the Binance exchange as well as on its decentralized counterpart Binance DEX. Moreover, this asset is among a series of cryptocurrency-pegged tokens that the firm intends to launch on Binance Chain.
The post adds that BTCB are completely backed-up by bitcoin, with the reserves formally visible as they’re recorded on the public ‘blockchain‘. Binance added that employing bitcoin as a backing asset for the new token permits for a lot more convenient audits, as the wallets are are available to anyone via the public blockchain explorer:
“The blockchain offers a far easier way to audit a crypto reserve than a conventional bank balance tether.”
On Binance, the token is listed against Bitcoin, permitting users to exchange BTCB for the native asset to which it’s pegged.
The post outlines that making ‘cryptocurrency‘-pegged tokens on the Binance Chain can provide users of the Binance DEX access to tokens that have their own blockchains and aren’t available on the Binance Chain.
Moreover, Binance added that the increased options of tokens on the decentralized exchange can lead to multiplied volume and liquidity. Still, the firm admits that such an approach compromises decentralization:
“While this approach is a lot more centralized than atomic swaps, we believe that it offers the next degree of ease-of-use to most traders. And most traders are already trusting Binance.com to hold their funds anyways.”
Binance chief executive officer ‘Changpeng Zhao’ also recently ‘revealed‘ that the exchange was getting ready to move 9,001 BTC. Within an other ‘tweet‘, Zhao however confirmed that the transferred funds are meant to back its bitcoin-backed token: