Binance, one of the largest cryptocurrency exchanges by volume, is issuing a bitcoin-backed token, the firm announced in a blog post on Monday.
Named BTCB, the tokens are reportedly 100% backed by bitcoins held in a reserve address, and will be issued by the exchange's native blockchain network, Binance Chain.
BTCB's launch is part of a larger move by the exchange to boost the selection of tokens available for trading on Binance DEX, Binance's recently-launched decentralized exchange. BTCBs will be available for trading via a BTCB/BTC trading pair on Binance's main platform, and can then be transferred to Binance DEX for trading.
"With the increase in the selection of tokens available on Binance DEX, there should be an increase in trading volume and liquidity, This would further increase the utility value of Binance DEX," the firm stated.
There are plans to have multiple crypto-pegged tokens in the future.