Major cryptocurrency exchange Binance plans to use a bridge between the Syscoin and Ethereum blockchains to move its Binance USD (BUSD) stablecoin between them.
The bridge developed by the Syscoin Foundation will allow BUSD holders to move their tokens between the Ethereum and Syscoin blockchains. This will also make the stablecoin available 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 use of decentralized financial services and stablecoins have caused Ethereum transaction fees to surge to a two-year high. Yesterday, Ethereum co-founder Vitalik Buterin commented on the ongoing problem and warned that rising transaction fees could undermine the security of the network.
Jagdeep Sidhu, Syscoin co-founder and lead core developer, said that he believes stablecoins will increasingly be used 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, eg. every stablecoin could be an instant cross-chain bridge!”
Looking to the future, Sidhu said that Syscoin is also “exploring opportunities to integrate with other blockchains” and specific 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.”