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XRP-pegged native token goes live on Binance DEX

Namrata Shukla

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Source: Pixabay

Malta-based Binance is in the news after it let slip an announcement about adding XRP-pegged tokens on its native Binance chain and Binance DEX on 3 October. Following the news breaking out, the Chief Executive Officer [CEO] of Binance, Changpeng Zhao, confirmed the leaked news, with the community being quick to respond to this development. On 10 October, Binance DEX announced the listing of XRP-BF2 [XRP]. The XRP/BNB pair will be made available for trading from the same day at 8.30 AM [UTC].

The DEX made this announcement through a blog that read,

“Binance DEX will list XRP-BF2(XRP) and open trading for a XRP/BNB trading pair at 2019/10/10 8:30 AM (UTC).”

XRP-BF2 will be pegged by actual XRP and Binance will enable conversion of XRP into XRP-BF2 through deposits and withdrawals. With the addition of XRP-BF2, the project aims to provide a token pegged with the third-largest coin, XRP, in order to trade on Binance DEX. This might lead to an increase in the interoperability between different token assets and add to the utility of Binance’s Decentralized exchange.

Binance and Binance DEX users will be able to access this token, which itself will serve the purpose of tracking the value of XRP. Binance DEX in its listing proposal mentions the primary use case would be for XRP to be transferable on Binance Chain and tradeable on its DEX. The current supply of XRP remains 10 million on Binance Chain and the project has claimed that it is not locking any amount. The BEP2 XRP will be mintable and the supply will resonate with the market demand.

“All the issued BEP2 XRP will be backed 1:1 by native XRP sitting in a publicly disclosed wallet that can be monitored by anyone at all times.”

In a statement, CEO CZ said,

“When users withdraw XRP on Binance.com, they can choose either native XRP or the Binance Chain XRP. With no trading involved, it is always 1:1, there is no spread, no slippage, no fees. More significantly, this is not limited to XRP now. The same mechanism can be used to migrate other coins onto Binance Chain, where they can experience non-custodian trading that was not possible before.”

The Binance wallet address holding the token is publicly disclosed and is noted to be bnb1x0vv5l6u5c7vpl7c947uxmm0gfstpdhg93gxpt, while the address where 10 million XRP remain locked for BEP2 XRP was rJpj1Mv21gJzsbsVnkp1U4nqchZbmZ9pM5. The project also claims to provide updates about the reserve balances and total circulation from time-to-time.

Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.