- Binance is switching to a “semi-automated” way of managing the reserves of tokens it issues.
- The move will make the process of creating new coins much more secure.
- Binance earlier released CEX Guidelines for Building Trust in the Crypto Ecosystem.
Binance is reportedly in the midst of putting in place a partially automated system that would guarantee so-called B-Tokens are “always openly backed.” This is made feasible by a mechanism that will not enable the minting of new currencies until collateral has been supplied to the proper wallet.
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This allegedly makes the process of creating new coins much more secure. On Wednesday, the information was made public after it was brought to the attention of the public by a spokesperson for Binance.
According to the spokesperson for the exchange, this move was made to make the 1:1 backing of B-token assets more transparent and visible on-chain.
The spokesperson emphasized that the collateral has always been available for withdrawal at any time and that the move to dedicated wallets is simply a means of making it more easily visible. The collateralized assets have been moved to separate wallets for each network and will remain there until they are needed.
This move is part of Binance’s ongoing efforts to improve transparency and accountability in its operations. By making the backing of its tokens more visible, the exchange is demonstrating its commitment to ensuring that its users’ assets are safe and secure at all times.
The spokesperson additionally said that the exchange has opted for a partially automated rather than full process for managing the reserves of tokens. This decision was made to limit security risks and ensure the safety of users’ assets.
It is important to remember that Binance’s CEX Guidelines for Building Trust in the Crypto Ecosystem asked cryptocurrency supporters to work together to make the cryptocurrency ecosystem safer and more trustworthy.
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