Binance is testing out a new GBP-based stablecoin

Binance looks to have issued a new British pound-pegged stablecoin called BGBP on the firm's native Binance Chain blockchain

Binance has announced that it is testing out a new GBP-backed stablecoin as a new asset on the firm’s native Binance Chain blockchain.

Despite being added as a new asset to be openly viewed on the firm’s blockchain, Binance CEO Changpeng ‘CZ’ Zhao said that the new stablecoin is still very much in the testing phase, with “only £200 minted so far” on the network.

After initially being discovered as an asset by CryptosBatman, the self-proclaimed big fan of cryptocurrencies commented that “it’s incredible how fast Binance moves”, adding that in his personal opinion he now expects the firm’s native token BNB “to skyrocket from here”.

According to stablecoinwar.com, Tether (USDT) still dominates the stablecoin space with over 78% of the nearly $4 billion worth of stable-pegged tokens in circulation today.

The only other UK pound-pegged stablecoin is the TrueGBP project, which also looks to be in the testing phase with just over £1 million issued in ERC-20 tokens on Ethereum.

Euro stablecoin next?

When asked about a possible euro-based stablecoin on Twitter, CZ responded that it would be a little trickier as the “euro has a negative interest rate”.

Back at the start of the year, Binance launched a new exchange called Binance Jersey aimed at the UK and European markets, with support for both the euro and the pound.

Now that the major exchange is looking to expand its stablecoin infrastructure, many will be watching not just how the exchange approaches the technical challenges of launching such tokens, but more importantly how it looks to back and hold a stable peg in an emerging regulatory environment for value-pegged crypto assets across the world.

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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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