Binance Chain will be releasing wrapped XRP tokens and putting them on the BEP2 chain. Changpeng Zhao, the CEO of Binance, also confirmed that this is a necessary step towards eventually adding more XRP-based trading pairs.
Binance Chain will be releasing a token which will be backed by real XRP. The news was ‘leaked’ recently by someone who caught the XRP-BF2 tokens on Binance Chain while it was still in testing.
10M XRP-BF2 Minted on Binance Chain
Thus far, 10 million XRP-BF2 have been created on Binance Chain, backed by presumably 10 million real XRP. The news was leaked by Lukas Bydzovsky (@LukasBydzovsky) who found it on Binance Chain while snooping around:
— Lukas Bydzovsky (@LukasBydzovsky) October 3, 2019
Zhao from Binance confirmed the leak shortly after:
This was suppose to be announced a bit later. But such is the nature of blockchain project, #transparency. Can't hide anything.
Guess which flood gates this opens up? https://t.co/Mxpm5jZCfz
— CZ Binance (@cz_binance) October 3, 2019
However, this isn’t about just giving XRP a Binance Chain wrapper. Ultimately, this is a necessary step to supporting XRP-backed pairs on Binance’s decentralized exchange. It’s unclear now which trading pairs will be supported given that the XRP-BF2 token is still in ‘testing.’
Binance has ported other cryptocurrencies to its chain in the past, as well. Most notably, BTCB was recently minted which represents BTC on Binance Chain. Each BTCB is backed by real BTC.
Binance claims that, by porting major cryptocurrencies onto Binance Chain, the ecosystem for its decentralized exchange (DEX) becomes that much larger. This way, you can trade BTC directly on Binance Chain rather than needing to go elsewhere.
XLM to Be Added to Binance Chain ‘Soon’
It seems as though Binance isn’t just stopping at XRP, either. Binance has a few other cryptocurrencies it is eyeing as possible candidates to move over to Binance Chain. For example, Zhao has already confirmed that XLM will also be represented.
The idea behind these moves is to make Binance DEX into a more cohesive market that supports all major cryptocurrencies. As of now, the decentralized exchange has some $1.5M in 24H trading volume. Albeit small compared to most major exchanges, it leads the pack among decentralized exchanges.
Is wrapping major cryptocurrencies on Binance Chain and releasing them as pegged tokens a good idea? Is it necessary for liquidity? Let us know your thoughts below in the comments.