‘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.
Pegged tokens are 100% backed by their native coin in reserve. The reserve addresses are published for anyone to audit. In the case of Binance Chain, there are already several cryptocurrencies that they have started pegging and have listed on Binance DEX.
Here is an example of a native XRP token and a pegged XRP BEP2 token.
Pegged Tokens on Binance Chain
Here is a list of assets that already has a BEP2 token peg:
- BTCB (BTCB-1DE), a token on Binance Chain whose value is pegged to Bitcoin.
- LTC BEP2 (LTC-F07), a pegged token that tracks the value of the native asset of Litecoin.
- XRP BEP2 (XRP-BF2) , a pegged token that tracks the value of the native asset of the XRP ledger.
- BCH BEP2 (BCH-1FD) , a pegged token that tracks the value of the native asset of Bitcoin Cash.
- ETH BEP2 (ETH-1C9), a pegged token that tracks the value of the native asset of Ethereum.
- TRX BEP2 (TRXB-2E6), a pegged token that tracks the value of the native asset of TRON.
Where to store Pegged Tokens?
These pegged tokens follow the BEP2 format, and thus, any wallet that supports BEP2 tokens can be used to hold or transact them.
Where are the tokens traded?
Trust Wallet (via Built-In DEX)
How to convert the Pegged Tokens to Native Assets?
These tokens can be swapped on Binance.com for their native assets. You just have to deposit them to the exchange.
Are there other Pegged Tokens?
- Wrapped Ether (WETH), refers to the ERC-20 compatible version of Ether.
- Wrapped Bitcoin (WBTC), standardizes Bitcoin to the ERC20 format, creating smart contracts for Bitcoin.