Token Canal Upgrade: Binance Wrapped BTokens on Ethereum, Panama Turns into Bridge
To further support the growth of DeFi and help bridge it with CeFi, we launched wrapped tokens called BTokens on Ethereum as part of our upgrade to the Token Canal program.
Binance Wrapped Tokens, Now Beyond Binance Smart Chain
Since the Token Canal Project was launched, more than 30 tokens are wrapped and pegged onto Binance Smart Chain and Binance Chain. These tokens, now worth more than $400 million, are used in all different ecosystem components, including DeFi.
In the bigger picture, the use of wrapped tokens has been a major component in the rise of DeFi. For instance, the total market value for BTC-pegged tokens on Ethereum reached more than $1.8 billion, with Wrapped Bitcoin (WBTC) capturing 80% of that value.
At Binance, we support the growth of DeFi wherever it’s needed. While we are committed to improving Binance Smart Chain, we also recognize that it’s also important to work with other blockchains for better liquidity across the board. After all, we’re all working to advance the freedom of money.
Hence, we have created BTokens, or wrapped tokens onto other blockchain ecosystems, starting with Ethereum. BTC, DOT, FIL and WRX are the first batch of tokens that we’re wrapping into ERC20 on Ethereum, as BBTC, BDOT, BFIL, and BWRX, respectively.
What Makes BTokens Better
Dedicated support from Binance. An important factor in determining a wrapped token’s trustworthiness is the integrity of the institution that issues it. Binance’s reputation as the largest exchange provides an extra layer of trust for these wrapped tokens.
Better security and insurance. To the same extent that we secure and insure the Binance exchange, we also implement utmost security and risk control measures to BTokens. Tokens used for this initiative are also covered by the SAFU fund.
Integration of DeFi and CeFi. Binance is providing liquidity for BTokens and supporting the deposit and withdrawal of crypto into this format, making the exchange an active participant in combining the best of CeFi and DeFi.
Verifiable 1:1 peg with native assets. We commit to publicly reveal more details on BTokens on a website, which will also host information regarding tokens wrapped as BEP20 and BEP2 on Binance Smart Chain and Binance Chain.
Binance Bridge (formerly Panama Project)
Another important project in our overall mission to increase interoperability between different blockchains was the Panama project. Earlier in October, we introduced the project, which allows anyone to convert their crypto assets in and out of Binance Chain and Binance Smart Chain wrapped tokens.
The Panama project was named after the canal that connects the Pacific and Atlantic oceans. Following the growth of the Token Canal Project, highlighted by its support of blockchains outside of BSC, the platform was renamed as Binance Bridge to reflect the upgraded possibilities unlocked by the continued growth of Binance cross-chain services.