Binance Adds New XRP-pegged Asset to Binance Chain
Binance, the world’s largest cryptocurrency exchange by adjusted trading volume, announced on October 10 the issuance of the second digital asset ever on Binance Chain, the exchange’s non-custodial trading platform.
The new asset is an XRP variant and it’s listed as XRP-BF2. According to Binance, XRP-BF2 is pegged one-to-one to XRP on Binance’s main trading platform for instant swapping without slippage.
The Malta-based exchange minted 10 million XRP-BF2 for Binance Chain.
Before launching XRP-BF2, Binance introduced a pegged variant of Bitcoin called BTCB (in June 2019).
Binance CEO Changpeng Zhao stated:
“All XRP issued on Binance Chain will be backed 1:1 by native XRP sitting in a publicly disclosed address that can be monitored by anyone at all times. With no trading involved, it is always 1:1, there is no spread, no slippage, no fees.”
The mechanism will also be added to other crypto assets, Zhao confirmed.
“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.”
Currently, the only way to off-board XRP-BF2 is through Binance’s trading platform, however, the exchange is working toward integrating additional swap channels through partner crypto wallets.
Earlier this week, Binance revealed it was adding peer-to-peer crypto payments via Alipay and WeChat, two of the most widely-used messaging platforms in mainland China. However, the trades are only supported with the Chinese yuan (CNY).