Binance may open the doors to issuing stablecoins pegged to multiple national currencies, going beyond dollar-pegged stablecoins, reported Bloomberg. The CFO of Binance, Wei Zhou, stated that new stablecoins will start appearing on the exchange “in a matter of weeks to a month or two”.
The intention to expand to other assets arrives after Binance DEX announced it would host a stablecoin backed by the British pound, though not issued by Binance. In the coming days, a disclosure is expected about the servicing bank for the project, which should hold funds to back each coin with one GBP.
The reason for the launch of new stablecoins are the needs of international traders for more intuitive assets.
“From the users’ perspective, only certain portions of the world use the dollar,” Zhou said. “Other users use other currencies, and we feel it should be reflected in stablecoins as well.”
Binance is the biggest holder of Tether (USDT), holding at least 600 million USDT in several wallets. The exchange also hosts markets for Paxos (PAX), True USD (TUSD) and other smaller dollar-pegged coins.
The exchange shows significant usage for stablecoins, with most assets achieving equilibrium. But recently, Binance reported on a significant anomaly for Gemini USD (GUSD). While other stablecoins increased their supply or at least kept it within range, GUSD saw outflows diminish its supply from around 100 million coins in January, down to around 20 million coins currently.
Binance supports stablecoins on multiple networks, even before opening Binance Chain to the creation of new tokens. The exchange sees the potential for other blockchains to host stablecoins, such as TRON-based and EOS-based USDT tokens.
The Binance report expresses the belief that stablecoins may increase cryptocurrency adoption. The issuance of those types of assets “may lead to long-term benefits such as additional channels for global remittance, greater price efficiency for non-USD cryptocurrency exchanges or the development of blockchain FX exchanges, on or off-chain,” explained the researchers.