Home / Crypto Currency / Crypto Exchange Giant Binance Creates Combined Stablecoin Market

Crypto Exchange Giant Binance Creates Combined Stablecoin Market


Advertisement

CCN is expanding. Are you our next full-time journalist from the West Coast USA? Send us your CV and examples here.

Interesting moves are afoot in stablecoin land.

Major crypto trading platform Binance, which is the top exchange by volume – doing nearly twice the 24-hour volume of its nearest competitor at time of writing – has announced that it is creating a new unified stablecoin market. While they haven’t released full details on this new market, we do know that USDT will be part of it, as it is the first token on the exchange to see a change related to it.

USDT will now be listed on Binance as USDⓈ – Binance deciding to use the Unicode symbol for an encircled S to denote a stablecoin. They write:

“Binance has renamed the USDT Market (USDT) to now be a combined Stablecoin Market (USDⓈ). This is to support more trading pairs with different stablecoins offered as a base pair. […] Please note that USDⓈ is not a new stablecoin: it is the symbol of Binance’s new stablecoin market.”

More Stablecoins Acting As Base Pairs

The mechanics of a stablecoin are simple enough: a steward holds funds in a bank account corresponding to tokens they sell to users. The trust issue is huge here, something that the trustless economy of Bitcoin is certainly weary of. But the advantages can’t be denied: no long deposit processes from exchanges to bank accounts. The ability to secure funds in a dollar-denominated currency when not trading them, essentially stabilizing them.

Likely More Stablecoins On The Way

While there are several such stablecoins on the market as it stands, they as a group are probably not capable of capturing the entire market that will bloom. Thus, Binance is looking forward – they likely expect to see more stablecoins – particularly stablecoins from other fiat systems, primarily the Euro and a few Asian currencies. They understand that there will be more Stablecoins, and to give users the best experience, they’re acting now in order to have a working market ahead of time, so they can then just add tokens later.

The major stablecoins of the present are: Tether USD, Paxos Standard, and USD Coin. Another that will likely be in the pair belongs to the Ethereum world – the Maker DAO – and it’s quite different in functionality than are the simple paired tokens. Maker has a number of algorithmic functions within it, so much so that commentator Emin Gun Sirer has argued that it is a stablecoin while the others are merely “pegged”:

Featured image from Shutterstock.

Get Exclusive Crypto Analysis by Professional Traders and Investors on Hacked.com. Sign up now and get the first month for free. Click here.
Advertisement
Read more

Check Also

Crypto Downturn Thrusts Tether into Top 5 in Market Cap Rankings

Tether (USDT) has recently found itself among the top five cryptocurrency assets by market cap – despite its own declining capitalization – due in part to the dramatic demise of other top currencies such as Bitcoin Cash and EOS. That’s particularly notable since Tether has shed around $700 million in assets since September – which The post Crypto Downturn Thrusts Tether into Top 5 in Market Cap Rankings appeared first on CCN

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.