Binance has listed an XRP-backed digital token called XRP-BF2 on its decentralized exchange Binance DEX, the exchange announced on Thursday.
It is the second crypto pegged token issued by the exchange on its native blockchain Bianance Chain and to date has minted over 10,000,000 XRP-BF2 tokens.
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BEP2 tokens are launched on the Binance chain and are similar to the ERC-20 tokens on Ethereum. The announcement detailed that over 140 BEP2 tokens are issued on the chain to date.
“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,” Changpeng “CZ” Zhao, founder and CEO of Binance explained.
Bringing liquidity to the market
The exchange believed that this listing on the decentralized exchange would increase the liquidity of XRP on the market and also provide financial accessibility to the users.
Binance.com will also provide swapping service between XRP and XRP-BF2 through both deposits and withdraws. The exchange is also planning to open more swap channels on partner wallet platforms.
“The swapping experience is optimized to be as easy as possible. 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,” Zho added.
Binance launched its decentralized exchange in April. The exchange, however, is blocking access to the platform in 29 countries, including the United States, due to regulatory hurdles.
Meanwhile, Binance recently enabled fiat deposits on its peer-to-peer platform through AliPay and WeChat payment gateways. However, AliPay later confirmed that it would block all such payment attempts.