Binance Adds XRP-Pegged Token to Its Decentralized Exchange

Binance, the world’s top cryptocurrency exchange by volume, announced Thursday the issuance of the second cryptocurrency ever onto its affiliated decentralized exchange (DEX), Binance Chain.

Listed as XRP-BF2, the XRP variant is pegged one-to-one to XRP on Binance’s main exchange for instant swapping without slippage, the exchange said. Binance minteds 10 million XRP-BF2 for the DEX.

XRP-BF2 is preceded by a June 2019 addition of a pegged variant of bitcoin, BTCB.

“All XRP issued on Binance Chain will be backed 1:1 by native XRP sitting in a publicly disclosed address that can be monitored by anyone at all times,” Binance CEO Changpeng Zhao (CZ) said in a statement. “With no trading involved, it is always 1:1, there is no spread, no slippage, no fees.”

The mechanism will soon spread to other cryptocurrencies as well, CZ continued:

“More significantly, this is not limited to XRP now. The same mechanism can be used to migrate other coins onto Binance Chain, where they can experience non-custodian trading that was not possible before.”

For now, the only road for off-boarding XRP-BF2 goes through Binance, although the firm is currently working toward adding swap channels through partner wallets.

Binance made headlines earlier this week with the addition of peer-to-peer payments from Alipay and WeChat, two of the most popular messaging apps in China. Only bitcoin-for-yuan trades are currently supported.

Binance image via Shutterstock