Binance Crypto Exchange Wants to Add More Stablecoins to Their Platform
The largest cryptocurrency exchange is Binance, based on their adjusted volume. In a recent annoucement, they have decided to extend their platform to serve more stablecoins to users. Right now, it already supports three different stablecoins, including Tether (USDT).
Wei Zhou spoke with CoinDesk on October 18th, saying,
“We hope to be able to list a few more stablecoins on our platform.”
However, that doesn’t mean that they are turning their back in any way on USDT, despite losing the equivalency with the dollar, taking it down just over two cents. Instead, Wei insisted, “As a whole, we believe things will even out. We will continue to support USDT.” The platform even managed to provide support for Paxos Standard (PAX) just a few weeks before the USDT’s loss in parity.
The research team with Binance is working to examine nearly every other stablecoin found in the industry, though they are particularly interested in the Gemini Dollar (GUSD), which is baked by Cameron and Tyler Winklevoss.
When discussing the recent expansion that Binance made to Uganda, Wei commented,
“Rather than hold bitcoin, [institutions] actually prefer to hold more stablecoins, because the dollar is still the default currency in some of these countries. That's just one use case that we've seen that's different in this part of the world, versus other parts of the world.”
Analytics tools, tied in with Chainalysis, is part of the attractive side for institutional investors. The goal is that these tools will improve the compliance procedures with Binance. However, Binance is still considering USDT a linchpin in the market. When it comes to tether, Wei said,
“We do believe this stablecoin, as an entity, is critical for our ecosystem right now because it offers an alternative for investors to park their assets in something they can relate to.”
That didn’t stop them from taking action when investors started pulling out their USDT assets. In fact, Binance even suspended the withdrawals of USDT at one point because the price started to fall drastically. According to Wei, the fluctuations were based on “rumors being spread untruthfully” about Tether, which is the company that issues USDT. However, Wei said that “from our perspective, we believe the market was always right.”
One of the co-founders of Coinmetrics.io and a partner of Castle Island Ventures, Nic Carter, said that stablecoins are often just a tool for traders that don’t have fiat on-ramps, whether for regulatory arbitrage or in an effort to get away from capital controls. Carter said,
“I don't believe traders will adopt the regulated alternatives, like the Gemini Dollar, which has anti-money laundering built into it. To me, those aren't even playing in the same sandbox.”