Binance Confirms Stablecoin Offering Coming Soon: Report

Cryptocurrency

Binance, the top crypto exchange by adjusted trading volume, has confirmed it will soon issue its own stablecoins.

In a phone interview with Bloomberg, Binance’s chief financial officer, Wei Zhou, said the first stablecoin will be launched on the platform “in a matter of weeks to a month or two.”

According to Zhou, the token will be called Binance GBP, which will be fully backed by reserves of British pounds. More coins tied to other fiat currencies will follow, he said, while Binance will also work with partners wanting to issue their own stablecoins on the exchange’s native blockchain, Binance Chain.

The move by Binance will add to the fast-growing number of rivals to the market-leading but controversial stablecoin tether.

Issued by an entity linked to crypto exchange Bitfinex, tether has recently been revealed to not, in fact, be fully backed by U.S. dollar holdings as was previously claimed. Tether Ltd is also involved in a legal dispute with the New York attorney general over a secretive loan to its sister firm.

With such issues likely to affect investor confidence, Binance’s stablecoin offerings could see some adoption, with Zhou telling Bloomberg the tokens will be 100 percent fiat backed and will offer more transparency.

For now, though, Binance has no plans to introduce a U.S. dollar-backed stablecoin, according to Zhou.

Binance image via Shutterstock

Products You May Like

Articles You May Like

Eric Trump says he will comply with New York attorney general’s subpoena but only after the 2020 election
President of Manhattan’s biggest office landlord on NYC’s future after Covid
IAU: It Is Time To Buy Gold
Wall Street’s best performing analysts have a strong buy rating on these 6 dividend stocks
Shares of furniture retailer Herman Miller soar 33% as home office sales surge