By One of the world’s leading cryptocurrency exchanges, Binance will reportedly begin issuing its own stablecoins within two months as per a Bloomberg report published on June 5th.
Chief Financial Officer at Binance Wei Zhou told Bloomberg that the exchange will begin issuing its stablecoins “in a matter of weeks to a month or two,” with the core goal of making stablecoins available for more global fiat currencies.
The first stablecoin which has been named “Binance GBP” will allegedly be denominated in and 100% backed by the British pound. Furthermore, Zhou also revealed that Binance will earn profits off interest incurred on fiat deposits, much like Tether (USDT) does.
Aside from Binance GBP, Binance also has plans to introduce several other stablecoins backed by other currencies, with the exception of USD. Zhou explained the company’s decision for this stating that:
“From the users’ perspective, only certain portions of the world use the dollar. Other users use other currencies, and we feel it should be reflected in stablecoins as well.”
Furthermore, the addition of Binance’s native stablecoins will ultimately reduce the market share of Tether on Binance. The stablecoin currently makes up for 50% of all stablecoin volume on the exchange, according to Zhou.
The news surrounding Binance testing a British pound pegged stablecoin popped up on the web on June 4th, when Twitter user CryptosBatman discovered that the listing “$BGBP” had been added to Binance’s site.
Following his tweet, Changpeng Zhao, CEO of Binance, replied to the tweet confirming that the exchange is indeed testing the stablecoin with only £200 minted so far.
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