Binance launches Bitcoin pegged token on Binance Chain
Binance, the world’s largest Crypto exchange has launched a Bitcoin (BTC) pegged token on Binance chain.
Binance launched its own Tendermint based Blockchain in April this year, the launch of a DEX may seem like it is contradicting its own business model, but binance has had nothing but positive developments going on so far. The Malta-based company recently announced that it is launching a Bitcoin pegged token on its own chain called BTCB.
Everything you need to know about BTCB
Binance claims that BTCB will be 100% backed by Bitcoins similar to WBTC which was launched on the Ethereum chain earlier this year. Binance has made the Bitcoin addresses of the reserves public so that anyone can go and audit whether it is fully backed or not.
To start with Binance has issued 9001 BTCB tokens backed by 9001 BTC tokens. Traders are able to convert the BTCB tokens to Bitcoins (BTC) on the Binance exchange, large buy orders will trade on the exchange with a spread of 0.1%.
Binance chain cannot support all tokens which is why synthetic tokens backed by real coins are issued to get exposure to non-Binance based tokens. This gives users exposure to non-Binance based tokens without having to worry about the backend infrastructure of various Blockchains. As Blockchains are open source and transparent it is easy to audit to ensure fractional reserve lending is not taking place with the tokens.
We can expect other major non-Binance based tokens to get exposure on the Binance chain with this model.
For $BTCB, the $BTC reserve address is: 3LYJfcfHPXYJreMsASk2jkn69LWEYKzexb
We have just reserved 9001 BTC and minted 9001 BTCB. https://t.co/344lxlqsMa
A trading pair on #Binance .com for BTCB/BTC will follow in a day or so, and we will issue a proposal on @Binance_DEX
— Binance (@binance) June 17, 2019
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