Cryptocurrency exchanges Bitfinex and Ethfinex now support trading for all six of the market’s major stablecoins.
Adding to its support for MakerDao’s Dai and Tether’s USDT, the sister platforms recently listed USD Coin (USDC), TrueUSD (TUSD), Paxos Standard Token (PAX) and Gemini USD (GUSD).
“From today, customers of Bitfinex and Ethfinex will be able to trade all six major stablecoins on both exchanges. At Bitfinex and Ethfinex, we’re dedicated to providing a high quality, unbiased meeting place for every ecosystem and customer,” the post reads.
Bitfinex’s promise to remain “unbiased” is notable given the exchange’s intrinsic ties to Tether. Both Bitfinex and Tether share a CEO, and the interoperations between both entities, which critics have regarded as opaque, have called Tether’s credibility into question, paving the way for the competing projects that Bitfinex has just listed.
Bitfinex made the announcement on December 4, 2018.
One of the biggest issues stemming from the cryptocurrency space is volatility. Many digital assets are known for experiencing wild price swings that can cause traders to incur unexpected and swift losses.
Stablecoins are considered to be a viable solution to this volatility. These currencies are typically tied to varying forms of fiat, such as USD, the euro or the yen, lessening the chances of price swings and giving investors more security with their trades.
Others, like Dai, are collateralized using cryptocurrencies, namely ether.
Bitfinex and Ethfinex were the first digital currency exchanges to introduce their customers to the Dai, an Ethereum-based stablecoin. The addition of the four new coins follows Bitfinex rolling out USD and euro fiat pairs for Tether in November of this year.
Tether, the oldest and most popular of the stablecoins the two exchanges offer, was launched in 2014. Allegedly tied to USD, it was the only stablecoin available to crypto traders until this year, when the market saw the addition of several new stablecoins that brought Tether’s competition to higher ground. Tether has had a whole world of issues, something for a new article itself.
At press time, both deposits and withdrawals for these six coins are reserved only for verified traders across both platforms, though trading itself remains unaffected by a customer’s verification status.
Stablecoins have seen increased exchange and platform adoption in the tail end of 2018.
Cryptocurrency exchange Binance, for example, recently added Paxos as a base currency to its trading platform, and the exchange also announced support for USDC in mid-November.
Bitcoin payment platform BitPay recently added PAX to its system, allowing employers and employees alike to both send and receive payments in the stablecoin.
Major cryptocurrency exchange Binance has added Paxos Standard (PAX) as a base currency on its platform, meaning the stablecoin can be coupled with other digital assets listed on the platform.
The addition of PAX on Binance will offer traders an alternative to controversial stablecoin Tether (USDT), which, until now, was the only stablecoin used as a base currency on the platform.
At press time, Tether is the most popular base currency on Binance.
“Demand for PAX has grown very quickly since we launched just over two months ago, making it clear that traders want a stable, regulated and transparent stablecoin,” Charles Cascarilla, Paxos co-founder and CEO, remarked in a statement.
PAX, which is backed 1:1 by the U.S. dollar, is expected to offer protection for customer assets, as its reserves are held at multiple FDIC-insured U.S. banks.
Paxos was launched in September 2018 by the Paxos Trust Company, approved and regulated by the New York State Department of Financial Services. Built on Ethereum’s blockchain, the stablecoin offers a digital alternative to the U.S. dollar that can be used for transacting settlements and is fully redeemable directly through Paxos.com.
PAX will trade against the Binance Coin (BNB), Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), EOS and Stellar Lumens (XLM).
Binance has also renamed its USDT Market to a Stablecoin Market (USDⓈ), as it gears up to support more stablecoins on the platform.
To avoid confusion, Binance explains that the USDⓈ is the symbol for the new stablecoin market and not a new stablecoin.