Binance, one of the major Bitcoin exchanges, announced today a new partnership with the developers behind the Elrond blockchain network. Thanks to this partnership, the Elrond network can immediately host Binance’s USD-pegged stablecoin BUSD.
In recent times, Elrond has claimed to have high throughput processing capabilities. Moreover, according to the company itself, this will improve the availability and performance of the blockchain network. The company said that the Elrond blockchain can achieve "1000x improvement" compared to existing blockchain networks. This is supported by the sharding architecture, which allows for cheap and fast transactions of stablecoins.
As one might imagine, Binance's stablecoin BUSD is almost exclusively traded on the Binance exchange. The stablecoin was announced in September 2019 as a result of a partnership between Paxos Trust Company and Binance. The stablecoin is based on the Ethereum network and is pegged to the US dollar at a 1:1 ratio. In addition, it corresponds to the total deposits of its issuer, Paxos. As of now, the total deposits have exceeded $100 million.
Now, BUSD will utilize the Elrond standard digital token model. This allows things like DApps and blockchain-based games to scale to millions of transactions per second. The company itself has a clear strategy in terms of adoption, helped by heavyweight partners like Binance and Samsung.
Binance Labs was one of the early backers of Elrond. Binance Labs led a $3.25 million funding round for Elrond, alongside NGC Ventures and Electric Capital. Prior to its partnership with Binance, Elrond itself was a little-known project, one of thousands. However, the company’s recently launched decentralized exchange (DEX) has created a wave of excitement among various cryptocurrency traders.
Samual Lim, Binance's chief compliance officer, said the company has seen a steady increase in BUSD holders. In addition, BUSD's DeFi products, real-world applications, and exchange listings have also increased. Lim explained that Binance believes that BUSD will continue to succeed, which also reflects the overall strength of the Binance ecosystem.
Beniamin Mincu, CEO of Elrond, stated that the high-performance capabilities of the Elrond network will be tested with BUSD. Mincu noted that the collaboration between the two companies is an important step in improving current use cases of blockchain globally and opening up new ones.
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