The team of Zilliqa has announced that the Binance stablecoin (BUSD) will arrive on its blockchain.
(1/4) Happy to share that Binance USD (BUSD) – a USD-pegged #stablecoin backed by the world's largest crypto exchange @Binance will come to the Zilliqa network! Get the details here: https://t.co/4hu1PanqHU pic.twitter.com/COjMR1Zv7O
— Zilliqa (@zilliqa) July 10, 2020
The Binance stablecoin is pegged 1 to 1 to the US dollar and reflects its properties. BUSD was created in collaboration with the company Paxos, which is regulated under US law and in particular by the New York State Department of Financial Services (NFDFS).
This is an operation that takes advantage of the interoperability between blockchains, in this case that of Ethereum (ETH), since the tokens minted by Paxos are ERC20, and the Zilliqa blockchain, which will be supported by the Switcheo platform in order to swap the token between the 2 blockchains.
The result will be a ZRC-2 token called zBUSD.
The whole procedure will be automated by a smart contract that will block BUSD and create an equivalent number of zBUSD. These will be managed by both Zilliqa and Switcheo in order to promote their diffusion.
It is interesting to note that these new tokens are already supported by the major wallets of the Zilliqa ecosystem such as ZilPay, Zillet and Moonlet, so for the end-user there will be no update procedures required and no time to wait.
Instead, the reverse system is to transfer the zBUSD tokens to Ethereum, as the first ones will be burned and the smart contract will release the tokens that were blocked. All without any manual operation by the end-user.
Binance supports innovation, which is demonstrated by this integration, as explained by Samuel Lim, CCO of Binance:
“As we look to the future of the blockchain industry, projects will continue to adapt their offerings based on the needs of users. From staking to stablecoins, Zilliqa has been pushing for innovations. Binance was one of the first trading platforms to support its innovative staked seed node service. This time, we are working together to introduce BUSD to the Zilliqa chain, furthering the mission of providing greater interoperability and growing the blockchain industry”.
Surely this is an important opportunity for Zilliqa to demonstrate the greatness of the project, as explained by Zilliqa’s CSO, Amrit Kumar:
‘At Zilliqa, we have always been fervent believers in the power of blockchain to create an open and interoperable financial ecosystem that is transparent and inclusive by design. This collaboration with Binance and Switcheo provides an unprecedented opportunity to pioneer the future of Open Finance for the region, with opportunities across trade finance, security token exchanges, and B2B cross-border settlements.”
The Switcheo team is also enthusiastic, and the co-founder Ivan Poon said:
“We’re happy to have the opportunity to work with Zilliqa and Binance in bridging the gap between blockchains. This new project aligns with our vision of a globally connected decentralised financial ecosystem and takes a positive first step towards greater interoperability between platforms. We’re truly excited to be a part of it.”
This token is not ready yet and will see the light in Q4 2020.