Binance to Introduce Derivative Coins Pegged to Bitcoin (BTC)
Cryptovest
Published Jun 18, 2019 05:47AM ET
Updated Jun 18, 2019 07:01AM ET
Binance to Introduce Derivative Coins Pegged to Bitcoin (BTC)
Binance is planning to launch new types of tokens with values pegged to Bitcoin (BTC), and in the future, to other leading coins. The reason for pegging assets to other coins is the need to trade BTC and other leading coins on Binance DEX, the decentralized marketplace.
Binance admits that the solution relies on a centralized custodial reserve of coins. However, the exchange pointed out that atomic swaps and other decentralized solutions were not developed enough to facilitate large-scale trading and transfers.
“The main benefit of offering crypto-pegged tokens is that, obviously, this makes available to Binance DEX traders the many coins that have their own blockchains and aren’t nativ...
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