Binance is developing a British pound-pegged digital currency on its proprietary Blockchain , the founder and CEO of the exchange Changpeng “CZ” Zhao confirmed on Monday.
The new stablecoin with ticker $BGBP was first noticed by a Twitter user on Binance's trading platform.
BIG NEWS!
It looks like @Binance has issued their Stable Coin $BGBP on Binance Chain! It's incredible how fast Binance moves. I can't say enough how big this is for Binance and Binance Chain. Expect $BNB to skyrocket from here! pic.twitter.com/FAEdvMG2tF — CryptosBatman ⚡ (@CryptosBatman) June 3, 2019
Zhao later confirmed that Binance is indeed working on a stablecoin project. He also detailed that the project is still in its testing phase and only £200 worth Binance GBP stablecoin has been minted so far.
This is in testing phase still, only £200 minted so far. Slowly, but surely...
— CZ Binance (@cz_binance) June 3, 2019
Binance is one of the largest digital asset exchange on the globe and, per Coinmarketcap.com data, handled $2.4 billion worth crypto trades in the last 24 hours.
Stablecoins - crypto of the future?
Stablecoins allow exchanges to bypass strict fiat trading requirements and the base physical asset restricts wild price swings as seen with Bitcoin or other digital currencies. These coins gained massive popularity in recent years as they provide fiat-like trading experience.
The major exchange is now eying the lucrative market for stablecoins. A subsidiary of current market leader OKEx recently partnered with US-based crypto custodian Prime Trust and launched a stablecoin called USDK.
Traditional stock exchanges are also diving into the stablecoin market as Swiss exchange SIX recently revealed that it is working on the development of a Swiss franc-pegged cryptocurrency.
Moreover, authorities in many jurisdictions also see potential in stablecoins. Last month, the governor of the Bank of France revealed that the central bank is taking interest in stablecoins while it is still hostile towards Cryptocurrencies .
Meanwhile, Binance recently came under fire as it is blocking access to its newly launched decentralized crypto exchange Binance DEX for traders based in 29 countries including the United States.
