Binance to Issue GBP-Pegged Stablecoin, Many More Native Stablecoins ‘Within Months’
Binance is reportedly looking to introduce its own stablecoins into the crypto market, ostensibly within the next two months.
The crypto exchange’s chief financial officer (CFO) Wei Zhou revealed to Bloomberg that the Binance will begin issuing a number of stablecoins that should be ready within weeks or at most, “a month or two.”
According to Zhou, the main goal is to have many more stablecoins pegged to the world’s currencies available.
The first stablecoin to be released will be called “Binance GBP,” which will be British pound-denominated and 100% pegged to the U.K. currency.
In terms of how Binance will benefit from the stablecoins, Zhou noted that the exchange will earn from the interest charged on fiat deposits, much like how it happens with tether (USDT).
In addition to Binance GBP, the platform is preparing to launch a series of other fiat-backed cryptocurrencies. The new stablecoins will be pegged on several currencies, except for the U.S. dollar.
Zhou explained his company’s decision to use other currencies by noting that an understanding of the “users’ perspective,” has shown that the U.S. dollar is only used by certain people around the world. Many of the other users make use of various other currencies.
Binance’s move thus allegedly is informed by the need to reflect this, which the exchange hopes to do through the different types of fiat-backed stablecoins.
The Binance CFO also noted that having the native stablecoins will reduce the market share that tether commands on the major exchange. According to Zhou, the tether (USDT) currently makes up more than 50% of all stablecoin volume on Binance.
Reports that Binance was testing a stablecoin pegged on the British pound first surfaced on June 4. It followed a tweet by one CryptosBatman, who allegedly had noticed “$BGBP” listed on Binance.
The reports were then confirmed by Binance CEO Changpeng Zhao, who commented by saying that the new pound-backed stablecoin was at the testing phase. At the time, Zhao revealed that only £200 had been minted.
Recent research has shown that China accounts for the largest share of tether (USDT) trading volume. Chinese cryptocurrency exchanges account for nearly 60% of all tether trades, with 2019 volumes currently at more than $10 billion.
In comparison, just about $450 million worth of USDT is traded via U.S-based exchanges.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.