Stablecoins have been the buzzword throughout the second half of 2018 and now with volatility coming back to crypto markets, their use across exchanges has just shot up. To capture this demand and provide more stablecoin options to its user, Binance has announced that it would be adding multiple trading pairs with TUSD starting December 7, 2018
Binance adds third stablecoin pair in less than a month
The demand for stablecoin is just increasing and Binance is doing every bit to provide the best options available to its customers. In over a past month, the leading crypto exchange has added multiple stablecoins and its equivalents pairs to fulfill the growing demand from its customers. In yet another attempt to meet this demand, Binance has announced that it will be adding trading pairs with TUSD as a quote asset into the USDⓈ Trading Market/Tab starting December 7, 2018, 10:00 AM (UTC). The pairs that will be available for trading TUSD include BNB/TUSD, BTC/TUSD, ETH/TUSD, XRP/TUSD, EOS/TUSD, and XLM/TUSD.
The announcement further states that the existing TUSD/BNB, TUSD/BTC, TUSD/ETH trading pairs will be removed and delisted at 2018/12/08 10:00 AM (UTC). All existing orders in each order book will also be canceled at this time.
This is the third stable coin pairs that Binance is adding to its offering in less than a months’ time.
Binance has added PAX pairs around 10 days back while had USDC pairs in Mid-November to meet the growing demand hand help its customers counter volatility. The PAX pairs available on Binance include BNB/PAX, BTC/PAX, ETH/PAX, XRP/PAX, EOS/PAX, and XLM/PAX while the USDC pairs that are available on the exchange are USDC/BNB and USDC/BTC
With these new additions, Binance is also reducing the reliance on controversial stablecoin Tether which has been pretty opaque. To allow its users to switch easily from Tether to other stablecoins Binance, a couple of months back had listed PAX/USDT
Binance had recently renamed its USDT Market (USDT) to Stablecoin Market (USDⓈ). This step was taken is to support more trading pairs with different stablecoins offered as a base pair and the exchange seems to be well on track to achieve its stablecoin vision.
Unlike Tether, TrueUSD is a pretty transparent stablecoin. It is part of the TrustToken asset tokenization platform where U.S Dollars are held in the bank accounts of multiple trust companies that have signed escrow agreements, rather than in a bank account controlled by a single company. The contents of the said escrow account are verified by an independent third-party accountant that publishes monthly attestation reports.
With multiple stablecoin listings, Binance has not just met the growing demand of stablecoins from its customers but also has reduced the dependence on Tether. With these new stablecoin listings now Binance users have a variety of options to protect their capital from extreme volatilities of crypto markets.
Is Binance correct in its strategy of adding multiple stablecoins? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.