Binance to Add Bitcoin Cash to Its Decentralized Exchange
October 17th, 2019
Already widely available for trading across the world, bitcoin cash continues to expand into new markets and platforms. The latest venue where users can soon exchange the cryptocurrency is Binance’s decentralized exchange. The system will feature a token pegged to BCH issued on Binance Chain.
Binance DEX to List Bitcoin Cash Pegged Token
The head of the world’s largest crypto exchange by volume, Changpeng Zhao, has proposed adding support for trading bitcoin cash on the decentralized exchange developed on top of Binance Chain. This will be done by listing a new token on the DEX (BCH-1FD), which is backed by real BCH assets and issued on Binance Chain. Bitcoin cash will thus become only the third cryptocurrency chosen to be added to the platform, following a BTC-pegged token which was issued in June and another tracking the price of Ripple’s XRP which was launched last Thursday.
The BCH-1FD is a token pegged to the BCH value and will be available for trading on the DEX, designed to allow users to exchange coins and tokens with full custody over their funds and wallets. The exchange’s plan is to issue about $2 million worth of the BCH-pegged tokens to be traded at first and it will continue to mint more in response to market demands. Users can swap native DEX tokens for the assets they are pegged to without slippage on the company’s main exchange.
“The BCH community is one of the strongest crypto communities, and we’re excited to collaborate with them on migrating BCH token onto Binance Chain.” said Binance CEO Changpeng Zhao. “The BEP-2 BCH token will be pegged to the native BCH. BCH holders can enjoy the seamless token swap experience on Binance.com and non-custodian trading on Binance DEX after the listing proposal is approved by the Binance Chain community.”
Decentralized Crypto Trading Is on the Rise
Centralized exchanges currently dominate the crypto ecosystem in terms of trading volumes, but many would like to see a transition to decentralized alternatives to eliminate third party custody. So far DEXs have suffered from low liquidity and long onchain order execution times as well as poor UX. Binance DEX is meant to change that, with an interface that resembles the company’s popular main exchange, and short block times ensuring trades are settled rapidly. Already many crypto projects have chosen to join Binance Chain and want to have their tokens listed on its DEX.
Another trend away from centralized exchanges that Binance supports is peer-to-peer trading. The company recently launched P2P trading functionality in China with BTC, ETH and USDT for trading against CNY (Chinese Yuan). The feature reportedly supports traders making transactions between themselves while using the widely-used Chinese payment apps Alipay and Wechat Pay.