Binance announces listing of BCH-pegged tokens on Binance Chain
Binance, the world’s largest crypto-exchange by market volume, recently made an announcement which should make the Bitcoin Cash community happy. In a recent Binance community post, Changpeng Zhao, CEO of Binance, proposed the listing of BCH-1FD, a token that would be pegged with Bitcoin Cash.
The proposal was put forward to add support for Bitcoin Cash trading on top of the Binance Chain. Bitcoin Cash is only the third crypto-asset to be chosen for the platform after a Bitcoin-backed token was issued in June earlier this year. An XRP-tracking token was later announced by Binance on 11 October.
Binance has claimed that the current listing is aimed at increasing interoperability between different assets, while improving the overall utility aspect of Binance DEX. Binance will initially issue a net worth of $2 million BCH-tokens and the exchange will continue issuing more tokens in accordance with market demands. The issued BEP2 BCH will be backed 1:1 with native BCH tokens and it will be placed in a disclosed reserved address that can be accessed and monitored round the clock by anyone in the community.
CEO CZ welcomed the announcement and stated,
“The BCH community is one of the strongest crypto communities, and we’re excited to collaborate with them on migrating BCH token onto Binance Chain.The BEP-2 BCH token will be pegged to the native BCH. BCH holders can enjoy the seamless token swap experience on Binance.com and non-custodian trading on Binance DEX after the listing proposal is approved by the Binance Chain community.”
Bitcoin Cash was in the news recently after its proponent Roger Ver recently mentioned that Bitcoin Cash will soon resonate with the functionality of a stablecoin too. He stressed that with BCH, users will be able to pay the interest that’s acquired on the fiat currency in the bank, directly on-chain to all the stablecoin holders in the network via a new tool introduced on the BCH network.