Digital asset trust company Paxos has merged with the biggest crypto exchange by volume- Binance for launching a stablecoin exchange system on a flagship trading platform of Binance. This new deposit gateway will be integrated on Binance.com, according to a press release published on 26 June. The portal will allow traders to exchange fiat for PAX directly. Moreover, the traders will be able to benefit from the liquidity of PAX.
The platform will allow traders to transfer fiat through a wire, and redeem PAX of equal value. The amount will be reflected in the Binance account of the trader.
Liquidity and Advantage
This new system is expected to increase the liquidity of the PAX stablecoin. With more liquidity, the price discovery on Binance exchange for the cryptocurrency will also improve. On Binance, the traders will not have to pay any processing fee. Also, there is no minimum or maximum trading limit on the trades using the PAX trading pairs.
This move not only means more significant advantage for PAX users, but also for all those who want to trade in stablecoins, using fiat. This makes entry into crypto trading much more accessible. Even though fiat based trading ecosystem for cryptos is a new trend, the CEO of Binance has emphasized the company’s intentions to expand this ecosystem.
In a way, this partnership can turn out to be one of mutual advantage for Binance and Paxos, as both parties will have an early bird advantage. Binance is actively pushing different stablecoins on the platform along with USDT, which makes up the most massive trading volume on the platform.
General Crypto Use
Crypto users can significantly benefit from a stable currency system. They can use it as an alternative to fiat. However, there remain challenges regarding scalability and regulation. In this respect, this can act as a first step towards greater adoption of such a system.