On March 29, centralized cryptocurrency exchange Binance announced the launch of Binance Bridge 2.0. This feature allows users to bridge assets from any blockchain, including tokens not listed on the Binance app, to BNB Chain. Bridged tokens listed on Binance will be stored in the Funding Wallet or Spot Wallet, while bridged tokens not listed will be transferred to the Funding Wallet only.
Users can bridge tokens in or out between their native blockchains and BNB Chain through the usual deposit and withdrawal features. In the future, Binance also plans to create an enhanced version of its mobile app to allow users to facilitate such a conversion through a single click. Regarding the development, Mayur Kamat, Head of Product at Binance, said:
“With Binance Bridge 2.0, we are able to make decentralized finance accessible to a broader audience around the world while still delivering the seamless user experience that centralized finance offers. We are already seeing this through the tremendous adoption of Binance Bridge 2.0. the PancakeSwap miniapp”.
Binance has also implemented a new automated token circulation control system on Binance Bridge 2.0. The exchange will not hold a surplus of pegged tokens, also known as wrapped assets, except for a buffer size in hot wallets. Instead, it will print additional tokens when users withdraw tokens stuck on the BNB Smart Chain.
The company indicated that the rest of the circulation will be backed by the native tokens deposited by users from the original blockchains. When users want to switch from the pegged tokens to the original tokens, they can deposit the pegged tokens to Binance and withdraw the original tokens. Simultaneously, excess tokens will be swept into the cold wallet and automatically burned.
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