Binance, the top crypto exchange by adjusted trading volume, has confirmed it will soon issue its own stablecoins.
In a phone interview with Bloomberg, Binance’s chief financial officer, Wei Zhou, said the first stablecoin will be launched on the platform “in a matter of weeks to a month or two.”
According to Zhou, the token will be called Binance GBP, which will be fully backed by reserves of British pounds. More coins tied to other fiat currencies will follow, he said, while Binance will also work with partners wanting to issue their own stablecoins on the exchange’s native blockchain, Binance Chain.
The move by Binance will add to the fast-growing number of rivals to the market-leading but controversial stablecoin tether.
Issued by an entity linked to crypto exchange Bitfinex, tether has recently been revealed to not, in fact, be fully backed by U.S. dollar holdings as was previously claimed. Tether Ltd is also involved in a legal dispute with the New York attorney general over a secretive loan to its sister firm.
With such issues likely to affect investor confidence, Binance’s stablecoin offerings could see some adoption, with Zhou telling Bloomberg the tokens will be 100 percent fiat backed and will offer more transparency.
For now, though, Binance has no plans to introduce a U.S. dollar-backed stablecoin, according to Zhou.
Binance image via Shutterstock