Singapore-based Zilliqa partners with Binance to bring the BUSD stablecoin on its network

By Edil Corneille

Singapore-based high-security blockchain platform – Zilliqa, announced that it will work with Binance, a blockchain and cryptocurrency infrastructure provider, to bring the BUSD stablecoin onto the Zilliqa network. This is an effort to foster greater interoperability across the Zilliqa and Ethereum ecosystems. It will enable developers to benefit from low-cost dapp development.

Issued in partnership with the Paxos Trust Company, the BUSD stablecoin is regulated by the New York Department of Financial Services and audited by a top auditing firm on a monthly basis. It is minted at a 1:1 ratio to US dollars and is 100 per cent backed by US dollars held in reserve at FDIC-insured US banks. Users can purchase BUSD on Binance, Paxos and on over 60 exchanges, wallets, DeFi protocols, payment and fiat gateways.

“As we look to the future of the blockchain industry, projects will continue to adapt their offerings based on the needs of users. From staking to stablecoins, Zilliqa 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 BUSD to the Zilliqa chain, furthering the mission of providing greater interoperability and growing the blockchain industry,” said Binance Chief Compliance Officer Samuel Lim.

Zilliqa will collaborate with decentralized exchange Switcheo in forming an administrative consortium to manage all ZRC-2 BUSD (zBUSD) contracts, building an interoperability bridge between Ethereum and the Zilliqa chain and allowing users to move ERC-20 BUSD to the Zilliqa chain. All Zilliqa token holders will be able to benefit from the easy transfer of ERC-20 BUSD to zBUSD, getting to access an interoperable experience.

Amrit Kumar, President and Chief Scientific Officer at Zilliqa mentioned, “At Zilliqa, we 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.”

As the blockchain ecosystem continues to evolve, stablecoins are said to represent the next generation of financial instruments that are primed to bring the best of legacy finance to emerging technologies. The BUSD stablecoin is envisaged to further Binance’s offerings with a user-centric mindset.

Co-Founder of Switcheo Ivan Poon stated, “We’re happy to have the opportunity to work with Zilliqa and Binance in bridging the gap between blockchains. This new project aligns with our vision of a globally connected decentralised financial ecosystem and takes a positive first step towards greater interoperability between platforms. We’re truly excited to be a part of it.”

BUSD is set to go live on the Zilliqa chain in Q4 of 2020. The interoperability bridge, which is under development, will bring all BUSD use cases available on Ethereum to Zilliqa, thereby extending opportunities for collaboration across the 2 platforms.