The first Binance stablecoin is coming, and the token just got a clean bill of health from smart contract security startup Quantstamp.
On July 18th, the Y Combinator-backed auditors announced they had finished reviewing the code of the pound sterling stablecoin, dubbed Binance GBP (BGBP) by the powerhouse Malta-based cryptocurrency exchange.
As part of the audit, Quantstamp’s experts checked the token’s code against the ERC20 token standard and combed for security flaws and any other problematic issues. The team’s work led to Binance updating their ERC20 libraries through OpenZeppelin and removing other miscellaneous “low risk issues.”
A Dual Issue Digital Sterling
Binance, nimble navigators of global regulatory arbitrage, are pushing ahead on the stablecoin against the almost poetic backdrop of Facebook blockchain head David Marcus having faced calls for a Libra development moratorium in U.S. congressional oversight hearings this week.
Of course, BGBP will simply be pegged 1:1 with the pound, whereas Libra is being more ambitiously devised like a Big Tech-backed non-sovereign central bank currency. (Note: Binance has considered attempting to join the Libra Association, per company chief strategy officer Gin Chao).
The BGBP won’t be too simple though, as the token is set to be released both on Ethereum and the exchange’s in-house blockchcain, Binance Chain, Binance chief executive officer Changpeng Zhao said on the news:
“The Quantstamp team is thorough and efficient when it comes to ensuring the security of ERC20 tokens, and we are appreciative of their audit of our first stablecoin, BGBP. As a dual issue token, BGBP is created on both Ethereum as an ERC20 token and on Binance Chain as a BEP2 token. We will eventually enable the two versions of BGBP to be converted freely and traded on Binance Jersey and Binance DEX.”
The stablecoin comes after CEO Zhao confirmed during a YouTube “Ask Me Anything” back in May that the exchange was exploring launching its own stablecoins.
The Cryptoeconomy’s Auditors of Choice
Quantstamp CEO Richard Ma hailed the BGBP audit as just the latest sign of the startup’s rising prominence in the cryptoeconomy:
“At Quantstamp, we are building the standard for blockchain security. Companies approach us because we help them innovate securely.”
In recent months, the fledgling play has made a name for itself in reviewing the smart contracts of high-profile industry stakeholders like eToro and Prysmatic Labs, and in doing so has “secured over a billion dollars of digital asset value,” the company has said.
In June, the startup launched the Quantstamp Security Network V2 on the Ethereum mainnet. With the activation, users can leverage the network scan and store smart contract vulnerability reports on the Ethereum blockchain. The update also made it possible for community members to run a Quantstamp node to earn the network’s native token, QSP.
Binance Has One Speed: Grind
The Malta-based exchange is taking a blitzkrieg approach to asserting itself as the cryptoeconomy’s leading service provider.
This month alone, Binance has burned $24 million worth of its BNB tokens, opened up a margin trading platform, announced plans for a cryptocurrency futures service, and turned two years old.
On the margin trading launch, CEO Zhao noted the company was gunning to become the most useful exchange brand for cryptocurrency users of all stripes:
“This is another step in providing an inclusive cryptocurrency trading platform catering to the needs of both advanced institutional traders and retail traders under the same roof. We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.”
Notably, the exchange also recently confirmed that it was looking to open up a new America-based operation, Binance US.
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