When an exchange offers trading pairs for a particular asset, this action is known as “listing” the asset. In traditional markets, this means that a company’s shares (or material asset) are available to be traded on that particular stock exchange. In general, this means that the company being listed has passed certain thresholds for financial and regulatory viability in addition to a degree of trust from the exchange. Thus, by the act of listing, the exchange is signaling that the shares of the company/asset are known to be of a base threshold of quality.
For cryptocurrency exchanges, a similar expression of trust in a project and its associated digital asset is expressed when an asset is listed with a trading pair with either Bitcoin (BTC) or one of the other major exchange pairs (including BNB, Ethereum (ETH) or Ripple (XRP). It is also an indication that there is sufficient liquidity in the associated trading pair to be able to form an accurate price discovery.