On Tuesday (March 29), centralized cryptocurrency exchange Binance announced the launch of Binance Bridge 2.0. This feature allows users to connect assets from any Blockchain platform to the BNB Chain, including those not listed on the Binance app. The connected tokens that are on Binance's list will be stored in the Funding Wallet or Spot Wallet. Meanwhile, connected tokens that are not on the list will only be transferred to the Funding Wallet.
Users can move tokens in and out between the Blockchain platform they are using and the BNB Chain through regular deposit and withdrawal functions. In the future, Binance also plans to create a better version of their phone app to allow users to make such conversions one step in one step. Regarding this development, Mayur Kamat, head of product at Binance said, "With Binance Bridge 2.0, we can make decentralized finance more accessible to a large global user base. In the meantime, it can still provide the smooth user experience that focused finance brings. We can see this through a large amount of use for the PancakeSwap Mini-app."
Binance has also implemented a new automated token traffic control system in Binance Bridge 2.0. The exchange will not maintain a surplus of pegged tokens, also known as wraparound tokens, except for a temporary data area in the hot wallet. Instead, they will issue more tokens when users withdraw tokens that are pegged to the BNB Smart Chain.
The company points out that all other circulations will be supported by original tokens deposited by users from the blockchain platforms they are using. When a user wants to move from the pegged token to the original token, they can deposit the token pegged to Binance and withdraw the original token. At the same time, the excess token will automatically transfer to the cold wallet and be destroyed.
