Binance Crypto exchange has announced the launch of a Bitcoin backed token (BTCB) on Binance Chain, its native Blockchain. The largest Crypto exchange by trading volume made this announcement in its Blog post on the 17th of June.
BTCB Available For Trading With Bitcoin
Going by the announcement, the just released token will be available for trading on the main Binance platform as well as on its decentralized exchange DEX. Additionally, the exchange has announced that this is only the first in a series of Crypto-backed tokens it is intending to release on the Binance Chain.
The blog post states that the newly launched BTCB token are fully backed by Bitcoin reserves, which can be easily verified as they are chronicled on the public Blockchain. The exchange has noted that by utilizing Bitcoin as a pegging asset, it is enabling a more convenient auditing of the new token seeing that anyone can view the wallets by using the public Blockchain explorer. The post says that the Blockchain allows for a better way of auditing the Crypto reserve as compared to a traditional bank balance tether.
On the Binance platform, the BTCB token can be traded against Bitcoin enabling users to trade it for the digital currency to which it is pegged (BTC).
Binance To Move 9001 Bitcoins For It’s New Tokens
The post notes that by developing tokens that are backed by Crypto on the Binance Chain, Binance DEX users get the opportunity to access tokens which have their own Blockchain networks different from Binance Chain. Additionally, the exchange says that with a wider selection of tokens on Binance DEX increased volume and liquidity is expected. The exchange however acknowledges that this approach undermines decentralization.
In the post the exchange notes that while this strategy is more centralized in comparison to atomic swaps, the company believes that in terms of ease of use for traders, it comes with a higher degree. Binance adds that it is also the most appropriate approach seeing as its users are already expecting and trusting the exchange to hold their funds.
In what seems to be a related mention, the exchange’s CEO Changpeng Zhao announced through a post on Twitter that the company will be moving 9001 Bitcoins. In another post made hours after the first one, the CEO seems to confirm that the moved funds are meant to be a reserve for its Bitcoin pegged token.
Binance.org Restriction Blamed On Website, Not Blockchain
In the beginning of the month, Binance’s decentralized exchange started blocking users based in 29 countries from accessing the platform. When trying to access the platform from any of the restricted regions, users were receiving a pop up message informing them of the block. Zhao took to Twitter to clarify that it was not the exchange that was blocking users but the website itself.
One of Binance DEX competitors which is a hybrid owned by Bitfinex Crypto exchange, Ethfinex Trustless, recently announced that it is launching an over the counter service.