Binance, the worldâs 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 Binanceâs 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.
âAll 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,â Binance CEO Changpeng Zhao (CZ) said in a statement. âWith no trading involved, it is always 1:1, there is no spread, no slippage, no fees.â
The mechanism will soon spread to other cryptocurrencies as well, CZ continued:
âMore 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.â
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