Exclusive: Binance in Talks with Facebook Over Libra

Binance officials are in contact with Facebook according to the cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term’s strategy officer.

Speaking to Finance Magnates at the FinTech Junction Conference in Tel Aviv on Thursday, Gin Chao said that the exchange is in early-stage discussions with the social media giant over its nascent Libra cryptocurrency.

“We have had official dialogue with Facebook,” said Chao. “With regarding to listings specifically, right now they are going to be on a so-called ‘private chain.’ So that means they won’t be looking for external Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term."

“However, from what we understand the potential to be, that would lead them to wanting a secondary market. Currencies benefit from a secondary market, so it would be in their best interest to want to be listed.”

Not alone

Chao did note that discussions with Facebook are “very much at a preliminary stage.” The Binance executive added that conversations with the social media giant “have largely focused on dealing with infrastructure.”

And, although Binance may be in contact with Facebook, Chao said that he expects other cryptocurrency exchanges to engage with Libra.

“It wouldn’t just be in [Facebook’s] interest to list their coin on our exchange,” said the Binance strategy officer. “It would also be in their interest to list on other exchanges as well and that’s probably going to happen."

“So if they decide to go on a public chain, and they get the sort of adoption that they could get, we would probably want to list them.”

Note: Chao's comments were made as part of a longer, exclusive interview with Finance Magnates. The whole interview will be published soon.