Binance Issues ONT-Backed Token for DEX Trading

Growing the library of assets built on its own blockchain, Binance recently issued a new token backed by the crypto asset, Ontology (ONT). 

Built on Binance Chain and governed by a series of parameters known as BEP2, the new token goes by the name ONT-33D, a Binance spokesperson told Cointelegraph in an email. 

Tokens are backed by ONT coins

Each ONT-33D token holds a backing of one ONT coin, the spokesperson said. In theory, this should keep the token's price the same as the ONT tokens traded on the open crypto market. 

By nature, ONT coins travel on Ontology's own main blockchain, making them incompatible with Binance's decentralized exchange, or DEX, as the two operate on different blockchains. 

"It will allow ONT holders to have decentralized exchange service," the spokesperson said of ONT-33D.

ONT-33D isn't the first of its kind

Under the same parameters, Binance announced Bitcoin BEP2 (BTCB) in June 2019, with each token  backed by Bitcoin (BTC). 

"Many more DEX services will launch in the future," the spokesperson said.

"For example, Ontology will add a node staking feature soon, expecting to integrate it with the Binance DEX and enabling ONT holders to have full control over their assets while participating in ecosystem governance."

The concept appears similar to wrapped Bitcoin (WBTC) — a token issued on Ethereum's blockchain, backed by Bitcoin, allowing for BTC trading on ERC-20-based decentralized exchanges.