World’s largest digital asset exchange, Binance, has partnered with Elrond a blockchain architecture to make Binance-backed stablecoin BUSD available on Elrond Network.
According to the announcement, the partnership between both firms will enable fast and inexpensive stablecoin transactions for Binance users.
BREAKING: The Elrond mainnet will launch with @binance $BUSD as the first stable coin. Transferring it will be as fast & inexpensive as the native $ERD. Thrilled to announce this collaboration with @cz_binance @binance 🛠 🔥 https://t.co/wRcSe9ohSA
— elrond (@ElrondNetwork) April 24, 2020
Binance further noted that the integration of Elrond would expose Binance’s BUSD to a larger user-base. It would also enable the users to be able to perform transactions at high speed and negligible cost on Elrond’s mainnet.
Notably, BUSD will utilize the Elrond Standard Digital Token model, which makes token transfers faster and cheaper as the native protocol coin.
Samuel Lim, Binance chief compliance officer, said the integration occurred as a result of high demand for their users. “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.”
Elrond increasing blockchain use
According to Elrond CEO, Beniamin Mincu, “the collaboration marks an important step in Elrond focus to significantly improve current blockchain use cases, and enable new ones as soon as Elrond goes live.”
Notably, the blockchain mainnet is slated to launch soon with the Binance BUSD as the first available stablecoin.
However, developers can begin building on the Elrond testnet with a dedicated IDE (integrated development environment) and smart contract frameworks. This would invariably give them a head start on implementing new DeFi use cases. At the same time, they would also receive 30% royalties from their smart contracts.
Mincu also emphasized on the immediate availability of the Binance BUSD, which he noted would put the high-performance capability of the blockchain network to great use.
Additionally, this innovation enables existing DeFi scenarios to run on Elrond at increased speed and lower cost. While other chains require calling a smart contract and incur extra expenses every time a token is transferred, the new initiative doesn’t.
BUSD growing fast among stablecoins
Notably, there has been a spike in the use of stablecoins with transactions nearing $100 billion so far in 2020. This is almost three times more than in 2019. Furthermore, BUSD has claimed to be the fastest-growing stablecoin in the cryptocurrency space this year.
Additionally, both firm has partnered previously, namely Elrond Network (ERD) launchpad token sale last year. Lim also stated that the partnership will enable Binance’s BUSD to grow and serve a larger user-base.