Binance announces the launch of Binance Bridge 2.0, which will incorporate CeFi and DeFi

Users would be able to connect assets from any blockchain to BNB Chain using the service.

Binance, a centralised cryptocurrency exchange, announced the launch of Binance Bridge 2.0 on March 29. Users can now connect assets from any blockchain, including those not listed on the Binance app, to the BNB Chain via this functionality. Unlisted bridging tokens will be sent to the Funding or Spot Wallets, while listed bridged tokens will be transferred to the Funding Wallet exclusively.

Users can use the standard deposit and withdrawal capabilities to bridge tokens between their native blockchains and the BNB Chain. Binance also wants to improve its mobile app in the future to enable users to perform similar conversions with a single click. Mayur Kamat, head of product at Binance, commented on the development:

“With Binance Bridge 2.0, we can expand global access to decentralised money while maintaining the seamless user experience associated with centralised banking.” This is already seen in the massive uptake of the PancakeSwap Mini-app.

Binance Bridge 2.0 also has a brand-new automatic token circulation control system. Except for a buffer size in hot wallets, the exchange will not hold a surplus of pegged tokens, commonly known as wrapped assets. Rather than that, it will print extra tokens in response to user withdrawals of pegged tokens from the BNB Smart Chain.

According to the firm, all subsequent circulation will be backed by the native tokens deposited by users on the original blockchains. When users wish to revert to the original tokens, they can deposit the pegged tokens in Binance and withdraw the original tokens. Simultaneously, extra tokens will be immediately swept to the cold wallet and burned.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Leave a Comment

Your email address will not be published.

Facebook
Twitter
Telegram

Recent Posts

Follow Us