Report: Binance Confirms It will Soon Issue Its Own Stablecoins

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The world’s largest cryptocurrency exchange by adjusted trading volume, Binance, has verified news that it will issue its own stablecoins soon.

Wei Zhou, the chief financial officer of Binance, said in a phone interview with Bloomberg that the initial stablecoin will be introduced on the platform “in a matter of weeks to a month or two.”

Zhou said that the token will be dubbed Binance GBP, which will be fully backed by reserves of British pounds. He said that there will be more coins tied to other fiat currencies to follow. In addition, the exchange will also collaborate with startups that like to issue their own stablecoins on Binance’s native blockchain, Binance Chain.

The announcement brings another rival to the market’s top stablecoin, but very controversial, the tether.

Tether, which is issued by a company connected to cryptocurrency exchange Bitfinex, has recently been discovered to not be fully backed by reserves of U.S. dollars, as opposed to what was formerly claimed. Tether Ltd is also tangled in a legal dispute with the New York attorney general over a discrete loan to its sister company.

Since Tether is plagued with issues that will probably affect investor confidence, the stablecoin offering of Binance could witness some adoption, with Zhou claiming that the tokens will offer more transparency and will be 100 percent backed by fiat.

According to Zhou, Binance has no plans at present to introduce another U.S. dollar-backed stable coin.