Binance Introduces Wrapped Tokens For Ethereum
- Users can now convert their BTC, DOT, FIL, and WRX to Wrapped Tokens and use them as ERC20 coins on the Ethereum network.
- The new assets are said to be covered by the SAFU fund with a 1:1 peg to their respective native cryptocurrencies.
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On November 12, Binance announced the launch of its new set of wrapped tokens for the Ethereum blockchain. Users can now convert some of their digital assets back and forth between Binance Smart Chain and the Ethereum ecosystem to explore various new decentralized apps and projects.
Wrapped tokens are a form of digital asset, which are pegged to the cryptocurrency they represent. One of the most popular such currencies at present is Wrapped Bitcoin (WBTC), with 0.6% of all minted Bitcoin currently being “wrapped”. This type of token allows for extended usage of your crypto on various other blockchains, providing extended interoperability and convenience.
According to the announcement, the first BTokens to be released include BTC, DOT, FIL, and WRX, which will be converted to BBTC, BDOT, BFIL, and BWRX, which are ERC-20 versions of the original assets. Once a user has converted their assets to any of these tokens, they can move them outside of Binance Smart Chain and onto Ethereum to receive full value from their usage.
Binance stated that BTokens are issued directly by them and guarantee a 1:1 peg with their respective native currencies. Moreover, the tokens will keep their value when moved between blockchain networks, with coverage by Binance’s SAFU fund.
The Project Token Canal initiative was launched with the purpose of bridging various blockchains together to allow users to maximize the utility and value of their digital assets. As part of Binance Bridge Project, the main goal of the initiative is to bring support for new wrapped tokens in order to provide the public with various new opportunities.
In their statement, Binance said that the introduction of BTokens was done with the sole purpose of providing users with an “additional level of freedom” over their assets. The company claimed that the new batch of Wrapped Tokens is being adopted rather quickly by the community, as recently BBTC was listed on Cream and ForTube, with $350 million worth of BTokens currently running on Binance Smart Chain.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.