Leading cryptocurrency exchange Binance now has its eyes set on the stablecoin market. According to a Bloomberg report, Binance will reportedly launch its own stablecoins in the next two months.
Earlier this week, we had reported that Binance is testing a new stablecoin backed by the British Pound called the Binance GBP (BGBP). The Bloomberg report confirms that it will be the first stablecoin launched by the exchange. The report claims that the stablecoin will be fully backed by British Pounds and the company will make money out of interest earned on fiat deposits.
In addition, Binance may also launch more stablecoins tied to other coins, but there are no plans of launching a US dollar-backed stablecoin. As we reported earlier, Stably just launched a new stablecoin on Binance Chain – the exchange’s proprietary blockchain.
Tether remains the most successful stablecoin with more than 98% market share. While many other stablecoins have been launched in the market, none have come close to the popularity of Tether. Will Binance’s popularity, combined with the fact that it may potentially add incentives to use its own stablecoins, coax traders to jump ship? We will wait and watch!