Binance is set to issue a number of tokens pegged to cryptocurrencies on its Blockchain to increase the number of options on its platform.
The tokens will also be included in the new exchange of Binance called DEX, since these tokens will help other cryptocurrencies being moved from elsewhere to the Blockchain of Binance.
According to a blog post by Binance, the first token that is pegged to Bitcoin will be released soon and it will be called BTCP. Furthermore, a trading pair will be created on the Binance website between the pegged token and Bitcoin (BTCP/BTC) so that people would be able to exchange Bitcoin for the token pegged to Bitcoin (BTCP), and on the other hand, exchange the tokens pegged to Bitcoin (BTCP) for Bitcoin.
These pegged tokens will be backed by Binance reserve of pegged cryptocurrencies.
Prior to the news about the launch of these pegged cryptocurrencies, the CEO of Binance tweeted that there is going to be a transfer of 9001 Bitcoins. He told people not to worry about this big transfer, and that it is for a good thing.
Binance further explained that, the reason for this move is so that people can always change their pegged tokens to the original cryptocurrency. They want the sum of cryptocurrencies to always be larger than the tokens pegged to them.