Binance has announced that it is in talks with Tether and Circle to expand support for native stablecoins. Native stablecoins refer to stablecoins issued by stablecoin issuers directly on the chain, corresponding to various packaged and cross-chain versions of stablecoins.
Remember to check you trust the issuer behind stablecoins you hold.
To increase user safety, #Binance has reached out to other industry players, including @Tether_to and @circle, with hopes to expand support for native versions of stablecoins on our platform.
— Binance (@binance) May 26, 2023
By adding support for native stablecoins issued by Tether and Circle directly on the chain, the exchange could potentially increase liquidity on its platform. This would allow users to trade these stablecoins more quickly and efficiently, as they would be readily available within the Binance ecosystem.
Native stablecoins issued directly on the chain eliminate the need for relying on external networks or intermediaries. This can help improve transaction speeds and reduce network congestion, as users can transact directly within the Binance ecosystem without relying on off-chain transfers or other networks.
Tether and Circle are prominent players in the stablecoin market and have focused on regulatory compliance. By partnering with these issuers and supporting their native stablecoins, Binance can demonstrate a commitment to working with regulated stablecoin providers. This can help improve trust and compliance with regulatory requirements.
Supporting native stablecoins from Tether and Circle would provide Binance users with more options for stablecoin holdings. Different stablecoins may have varying features, collateralization methods, or regulatory oversight, so expanding the selection can cater to the preferences of a broader user base.
The mention of “packaged and cross-chain versions of stablecoins” suggests the possibility of interoperability between different blockchain networks. If Binance were to support such native stablecoins, it could potentially enable cross-chain transactions and bridge liquidity between various blockchain ecosystems.
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