Binance Set To Release Own Stablecoins Soon

Binance Set To Release Own Stablecoins Soon

Bloomberg has reported that Binance will be releasing its own stablecoins in the next two months. The report was made on the 5th of June.

Binance Will Not Be Releasing A USD-Pegged Stablecoin

According to the Bloomberg report, the exchange’s CFO (Chief Financial Officer) Wei Zhou said that the exchange will begin issuing the stablecoins within weeks or in a month or two. According to the CFO the main aim of the offering is making stablecoins accessible in more currencies from across the globe.

The first stablecoin to be released by the exchange will be the Binance GBP and will purportedly be fully backed by the British pound. Zhou also stated that the exchange will be earning from fiat deposit interest, same as Tether.

In addition to the Binance GBP, Binance will also be releasing various other stablecoins pegged on other fiat currencies apart from the United States dollar. To this end Zhou has explained that from the perspective of the users, it’s only a certain part of the world that utilizes the American dollar. He added that other users from other parts of the world use different fiat currencies and the company feels that this should be exhibited in the stablecoins available in the market.

GBP coin

Binance To Possibly Benefit From Tether’s Woes

With Binance releasing its own stablecoins, it is expected that the Tether’s market share on the exchange will significantly drop. According to the company’s CFO, the controversial Tether currently accounts for up to 50% of the exchange’s stablecoin volume. The stablecoin which shares executives with Bitfinex, the issuer of the stablecoin, has been recently exposed for not being fully backed by the dollar. Tether’s owners, Tether LTD, had previously claimed that the stablecoin was 100% pegged on the USD.

The two companies are also in a legal dispute with the New York Attorney General. The NY AG claims that the Crypto exchange Bitfinex was loaned more than $600 million by Tether after it lost $850 million in a currency converter. With so many issues plaguing Tether and eroding investor confidence, it is expected that Binance’s offerings will see more adoption. Zhou told Bloomberg that the stablecoin will not only be fully backed, the firm will also be offering more transparency to its customers.

The initial news that the Crypto exchange may be releasing a British pound pegged digital currency was made on the 4th of June by a Twitter user going by the name CryptosBatman. The user noticed that the platform had listed a token dubbed BGBP and made a tweet about it. Changpeng Zhao subsequently responded by affirming that the exchange is in the process of testing a pond pegged stablecoin and as at the time has only minted £200.

The Chinese Market Dominating USDT Trading

Meanwhile, a recent analysis by Diar has shown that Chinese Crypto exchanges account for 60% of the world’s USDT trading. Going by the report, this means that Chinese exchanges have facilitated more than $10 billion in Tether trades while the US has accounted for only $450 million.

June 7, 2019

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Samantha Mitchell

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