‘Peg’ means to tie the value of one crypto to another. The main purpose of these tokens is to allow trading of the assets in DEXes that is not currently possible due to their different blockchains. This brings digital assets such as BTC, ETH, USDT, LTC, XRP, LINK, ATOM, DOT, XTZ, ONT, and more to the Binance Chain ecosystem.
Trust Wallet supports Bitcoin (BTC) and Ripple (XRP), and several other blockchains. However, these assets cannot be traded natively on any DEX.
Pegged tokens are 100% backed by their native coin in reserve.
The screenshot below shows BTCB which is a Pegged BEP2 token of Bitcoin (BTC) that resides on Binance Chain.
And this one is a Pegged BEP20 token of Bitcoin (BTC) on the Binance Smart Chain.
With pegging, it allows a user to trade their Bitcoin (BTC) and other supported assets on Binance DEX.
As well as on a Binance Smart Chain DEX like PancakeSwap (which is already built-in on Trust Wallet).
Follow this guide to convert Binance-Peg Tokens to native assets.