Zilliqa has announced that it is making progress in its move to add a USD-backed stablecoin Binance USD (BUSD) to its network for the first time.
Adding Binance USD to Zilliqa will involve building an interoperability bridge between Ethereum and the Zilliqa chain. Allowing ERC-20 tokens to be moved from one chain to another.
(1/4) Happy to share that Binance USD (BUSD) – a USD-pegged #stablecoin backed by the world's largest crypto exchange @Binance will come to the Zilliqa network! Get the details here: https://t.co/4hu1PanqHU pic.twitter.com/COjMR1Zv7O
— Zilliqa (@zilliqa) July 10, 2020
Zilliqa, an enterprise-level blockchain platform, in collaboration with Switcheo, a decentralized exchange will be in charge of creating a bridge between Ethereum and the Zilliqa chain. In order, to bring ERC20-BUSD stablecoin to Zilliqa and circulate as ZRC-2-BUSD.
The Binance USD stablecoin will be issued in partnership with the Paxos Trust Company. It will be regulated by the New York Department of Financial Services and audited monthly. Notably, the stablecoin is backed by 1 to 1 dollar to coin, and funds are held in US banks.
Binance Chief Compliance Officer, Samuel Lim said Zilliqa blockchain has been pushing for innovations. “Binance was one of the first trading platforms to support its innovative staked seed node service. This time, we are working together to introduce Binance USD to the Zilliqa blockchain. Furthering the mission of providing greater interoperability and growing the blockchain industry.”
Blockchain to create an interoperable financial ecosystem
In his statement, Amrit Kumar, President and Chief Scientific Officer at Zilliqa, said they have always been fervent believers in the power of blockchain. To create an open and interoperable financial ecosystem that is transparent and inclusive by design.
“This collaboration with Binance and Switcheo provides an unprecedented opportunity to pioneer the future of Open Finance for the region, with opportunities across trade finance, security token exchanges, and B2B cross-border settlements,” he added.
Additionally, Zilliqa blockchain noted it is delighted to be taking an active role in pushing the digital finance infrastructure. Taking it to the next level by leveraging our smart contract capabilities.
Ivan Poon co-founder of Switcheo said they were pleased with the opportunity to work with Zilliqa blockchain and Binance in bridging the gap between blockchains.
Mechanics of the Bridge
It is worth noting that the bridge will connect Ethereum and the Zilliqa blockchain in a bi-directional manner. It will not just be limited to enabling BUSD functionality, but also extends to other ERC20-like tokens built on the Zilliqa and Ethereum blockchains.
According to the announcement by Zilliqa, the Binance USD tokens once moved from the Ethereum chain will take the form of ZRC-2 tokens on Zilliqa. zBUSD token holders will benefit from the speed and low transaction fees on the Zilliqa chain. Holders will be able to move from one chain to another at any point in time.
Notably, the minting of ZRC tokens will be fully automated. And zBUSD tokens will be supported by several wallet providers within the Zilliqa ecosystem, including ZilPay, Zillet, and Moonlet.
Additionally, according to reports, Binance USD is expected to go live on the Zilliqa blockchain in Q4 of 2020.
Previously in June Zilliqa token, ZIL was made available for staking on the Binance network.