Binance Enters Partnership with Elrond to Integrate Stablecoin BUSD on Elrond Blockchain
• Elrond claims to have more usability,
efficiency, and higher security at negligible cost.
• The Elrond mainnet will launch the BUSD as the first available stable coin.
Global Crypto Exchange Binance has announced a collaboration with Elrond Network which will integrate its USD - pegged stablecoin BUSD on the Elrond blockchain network.
The agreement is considered as Binance’s strategy to leverage emerging networks like Elrond to accelerate the number of BUSD holders and application listings.
How Elrond and Binance Association will work?
By entering into this partnership, BUSD will adopt the ‘Standard Digital Token Model’ of Elrond that will scale-up the rate of transactions per second at a lower cost and will address other infrastructure challenges as well. Emerging networks like Elrond will attract millions of Binance users by offering the stablecoin BUSD.
The high processing capacity of the Elrond network will escalate the efficiency and speed of the BUSD transactions and will cut down the transactional charges significantly. As per Elrond, its blockchain with state- sharded mechanism will enable 1000X improvement over the existing blockchain.
The Elrond Mainnet Launch
The mainnet of Elrond will soon be launched introducing the $BUSD as the first available stablecoin on its network. Developers have been offered to initiate for developing apps with dedicated IDE and smart contracts for which they can get back 30% royalties on implementing DeFi use cases.
Binance USD (BUSD)
Even in the economic crisis that is looming over the world, Stable coins are emerging as a safe investment option in recent times. In 2020, the trend of stablecoin booming is three times more than in 2019 reaching 100 billion transactions so far. But the slow rate of transactions, heavy transfer cost, long period for confirmation of transactions are some of the challenges that decapitate this growth.
Binance USD (BUSD) is the Ethereum- based USD – denominated stable coin that is exclusively traded on the Binance exchange. BUSD is among the fastest-growing stable coins in the crypto industry with around $200 million circulating supply. It was issued by Paxos in partnership with Binance in 2019. Since issuance, it deposits more than 100 million that is almost equivalent to Paxos.
Disclosing about the partnership, Samuel Lim, Binance Chief Compliance Officer commented:
“We have been seeing a steady increase in the number of BUSD holders, exchange listings, DeFi offerings, and real-world applications. We believe BUSD will continue to surge in popularity given the strength of Binance’s ecosystem.”
Beniamin Mincu, CEO of Elrond shared this news on Twitter:
While commenting on this venture, he said, “Given that the Elrond launch is so close, the immediate availability of the Binance $BUSD, will put the high-performance capability of our network to great use. This collaboration marks an important step in our focus to significantly improve current blockchain use cases, and enable new ones as soon as Elrond good live.”
More about Binance
Binance was founded by Changpeng Zhao in 2017. It is a top global blockchain company that owns the largest crypto current Exchange Binance in terms of the trading volume.
More about Elrond
Elrond is a smart contract platform with state-of-the-art blockchain architecture. It is highly scalable with enormous speed (10,000 transactions/second), also highly secured, and available at low-cost for DApps, and all types of business use cases.
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CBW - External Analyst