Binance to Transfer BUSD Across Blockchains on Syscoin-Ethereum Bridge
Major cryptocurrency exchange Binance intends to utilize a bridge between the Syscoin and Ethereum blockchains to move its Binance USD (BUSD) stablecoin between them.
The bridge formed by Blockchain Foundry — the firm powering the Syscoin blockchain — will enable BUSD holders to move their tokens between the Ethereum and Syscoin blockchains. This will also make the stablecoin accessible on the Syscoin blockchain for the first time.
Binance said, “Users can take advantage of Syscoin’s fast, scalable and low-cost transactions while also preserving the ability to leverage Ethereum’s smart contract functionality. Also, help provide more use cases for BUSD holding users.”
Relief from Ethereum’s increasing fees
Growth in the application of decentralized financial services and stablecoins has caused Ethereum transaction fees to rise to a two-year high. Yesterday, Ethereum co-founder Vitalik Buterin commented on the continuous problem, furthermore warned that rising transaction fees could undermine the network’s security. Jagdeep Sidhu, Syscoin co-founder and lead core developer said that he believes stablecoins will increasingly be utilized as a quick way to transfer value across blockchains.
Interestingly, Buterin pointed out this very use case in late May, stating: “In the specific case of issuer-backed stablecoins, there’s lots of things that could be done but aren’t, e.g., every stablecoin could be an instant cross-chain bridge!” Looking to the future, Sidhu stated that Syscoin is also “exploring opportunities to integrate with other blockchains” and particular discussions on the matter are already underway.
“Ethereum was an obvious first choice due to its nature as a proven smart contract platform and the pressing need for the benefits Syscoin can provide its network, including scalability. Future integrations will be carefully chosen according to the utility value they add to the ecosystem and how they can benefit adopters such as Binance.”