The Changpeng Zhao-led firm said on its website that it intends to convert several cryptocurrencies into the BEP2 format, starting with Bitcoin, leading to the creation of the BTCB token.
It will also list a trading pair on Binance.com between the pegged token and native coin such as BTC/BTCB.
As of June 17, Binance has reserved 9,001 BTC and minted 9,001 BTCB.
The BTC reserve address for BTCB is: 3LYJfcfHPXYJreMsASk2jkn69LWEYKzexb
Binance explained that creating cryptocurrency-pegged tokens will help make other coins with their own blockchains operating outside Binance Chain available to traders on Binance DEX.
The exchange believes the move will potentially help increase trading volume and liquidity, as well as boost the utility value of the exchange platform.
Despite the project embodying a more centralized approach than atomic swaps, Binance assured that it will work to offer a higher degree of ease-of-use to most traders.
The exchange also noted that the project is not exclusive to cross-chain atomic swaps or other decentralized approaches.