Altcoin News: Binance Exchange Expects to Release Its Stablecoins within Two Months

June 6, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The Binance, Cryptocurrency Exchange will begin issuing its own stablecoins in a period of “from several weeks to a month or two.” This was announced by the financial director of Binance, Wei Zhou, in a conversation with Bloomberg.

The first stablecoin, called Binance GBP, will be pegged to the British pound and fully secured. The exchange will announce the name of the partner bank as soon as the steablecoin, which is currently at the testing stage, will be released into circulation, Zhou explained.

In the future, Binance intends to launch additional stablecoins linked to other foreign currencies, but it does not plan to create an asset, the rate of which will be stable against the US dollar. In addition, third-party companies will be involved in the release of the stablecoins on the Binance Chain blockchain, CFO of Binance added. This week, Stably, a startup added Binance Chain support for his steabecoin USDS.

The ultimate goal is to create diverse assets covering a wide range of national currencies.

“From the users’ perspective, only certain portions of the world use the dollar. Other users use other currencies, and we feel it should be reflected in stablecoins as well,” Zhou explained. “Binance could also work with an auditor to offer strong assurances that the tokens are fully backed and easily redeemable," said Kyle Samani, co-founder of the cryptocurrency hedge fund Multicoin Capital. — “Considering the recent events with Tether, those assurances would be a compelling reason to use Binance’s stablecoin.” “As the crypto market matures, competition is welcomed to speed up the transition of stablecoins into a wider market,” explained Paolo Ardoino, technical director of Bitfinex, affiliated with Tether.

Author: Marko Vidrih