On June 5th, Wei Zhou, the Chief Financial Officer (CFO) of Binance, reportedly said that his company is preparing to issue its own fully fiat-collateralized stablecoins “in a matter of weeks to a month or two.”
The first hint of a Binance stablecoin appeared on June 3rd when Twitter user “CryptosBatman” came across a new token called BGBP (“Binance GBP Stable Coin”) while using Binance Chain Explorer, which made him to tweet:
It looks like @Binance has issued their Stable Coin $BGBP on Binance Chain!
It’s incredible how fast Binance moves. I can’t say enough how big this is for Binance and Binance Chain.”
On June 5th, Bloomberg reported that it had been informed by the Binance CFO that Binance would be issuing its own fully fiat-backed stablecoins on Binance Chain “in a matter of weeks to a month or two.”
A co-founder of crypto-focused investment firm Multicoin Capital Management, Kyle Samani, told Bloomberg via email that this means that this move by Binance would bring Tether some serious competition:
“A stablecoin issued by Binance would certainly threaten Tether’s value proposition… Binance could also work with an auditor to offer strong assurances that the tokens are fully backed and easily redeemable… Considering the recent events with Tether, those assurances would be a compelling reason to use Binance’s stablecoin.”
The first fiat-backed stablecoin to be issued by Binance, according to Zhou, is Binance GBP (“BGBP”), and the bank where the GBP reserves will be held will be revealed when the stablecoin is launched.