Binance will issue a number of tokens pegged to leading cryptocurrencies on Binance Chain to boost the number of trading options on its platform.
The tokens are also likely to be extended to Binance DEX, the firm’s recently launched decentralized exchange, as they create the potential to in effect move cryptos from different blockchains onto its network.
The company said in a blog post that it expects to release the first such token – one pegged to bitcoin and to be listed as BTCB – in the coming days. A trading pair will be created on Binance.com between the pegged token and bitcoin (BTCB/BTC).
The crypto-pegged tokens, based on the exchange’s BEP2 format, will be backed by Binance’s reserves of the pegged cryptocurrency. Before the news was announced Monday, CEO Changpeng “CZ” Zhao tweeted a warning of an impending move of bitcoin for the purpose.