XRP-BF2 is backed by and pegged to XRP assets and is issued on Binance Chain, the community-led blockchain software system that supports Binance DEX. XRP-BF2, which is minted and issued by Binance, is tradeable on Binance DEX.
According to a proposal by Binance CEO Changpeng Zhao, the point of XRP-BF2 is to “increase the interoperability between different token assets” on Binance DEX.
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Binance has minted 10,000,000 XRP-BF2 assets on Binance Chain, and the total supply will increase along with market demand.
“All XRP issued on Binance Chain will be backed 1:1 by native XRP sitting in a publicly disclosed address that can be monitored by anyone at all times,” said Zhao in today’s press release.
“The swapping experience is optimized to be as easy as possible,” he added. “When users withdraw XRP on Binance.com, they can choose either native XRP or the Binance Chain XRP. With no trading involved, it is always 1:1, there is no spread, no slippage, no fees.”
XRP-BF2 is the second crypto-pegged token to be issued on Binance Chain after it issued a Bitcoin-pegged token, BTCB, back in June. Zhao said the same mechanism can be used to migrate other coins onto Binance DEX—which could point the way to a stablecoin ecosystem.