Zilliqa's team has announced that stablecoin Binance (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
Binance's stablecoin is pegged 1: 1 to the US dollar and reflects its properties. BUSD It was created in collaboration with the Paxos company, which is regulated by United States 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 compatible with the Switcheo platform to exchange the token between the 2 blockchains.
The result will be a ZRC-2 token called zBUSD.
The entire procedure will be automated by a smart contract that will block BUSD and create an equivalent number of zBUSD. These will be managed by Zilliqa and Switcheo to promote their dissemination.
It is interesting to note that these new tokens are already compatible with the main wallets of the Zilliqa ecosystem such as ZilPay, Zillet and Moonlet, so for the end user there will be no necessary update procedures and there will be no time to wait.
Instead, the reverse system is to transfer the zBUSD tokens to Ethereum, as the former 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 Samuel LimBinance CCO:
As we look to the future of the blockchain industry, projects will continue to tailor their offerings based on the needs of users. From stakeout to stablecoins, Zilliqa has been pushing for innovations. Binance was one of the first trading platforms to endorse its innovative staked seed node service. This time, we are working together to introduce BUSD to the Zilliqa chain, promoting 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 the Zilliqa 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 through trade finance, security token exchanges, and B2B cross-border settlements. ”
The Switcheo team is also excited, and the co-founder Ivan Poon said:
"We are happy to have the opportunity to work with Zilliqa and Binance to bridge the gap between blockchains. This new project aligns with our vision of a globally connected decentralized financial ecosystem and takes a positive first step toward greater interoperability between platforms. We are really excited to be a part of this. "
This token is not ready yet and will be released in the fourth quarter of 2020.
However, BUSD is not the first stable coin to land in Zilliqa, as there are already projects how StraitsX and the stable euro currency: Euro Hybrid.