Cryptocurrency exchange Binance is launching a token pegged 1:1 with XRP, says Changpeng Zhao, the company’s founder and CEO.
Zhao broke the news on Twitter on Thursday, saying the asset will be “100% (actually over 100%) backed” by XRP.
This was suppose to be announced a bit later. But such is the nature of blockchain project, #transparency. Can’t hide anything.
Guess which flood gates this opens up? https://t.co/Mxpm5jZCfz
— CZ Binance (@cz_binance) October 3, 2019
The new token is designed to give users on Binance’s decentralized crypto exchange (Binance’S “DEX”), a way to invest in a crypto asset that will perform exactly the way XRP does.
The CEO says that every transaction can be verified on the blockchain and that he hopes the new asset will actually increase the demand for native XRP tokens.
“The supply would still be ‘in circulation’, just on the Binance Chain. They should be actively used for trading. Nothing changes from the supply perspective. Demand should increase though as there is more use-case/trading going on.”