Binance to introduce fiat-to-crypto OTC trading to remain competitive in the Chinese market.
September 19, 2019, | AtoZ Markets - The largest crypto exchange in the world by trading volume Binance is planning to introduce fiat-to-crypto over-the-counter (OTC) trading in less than a month. This will allow customers to have access to fiat currency gateaways.
According to the Co-Founder of Binance, He Yi who is also the chief marketing officer (CMO) highlighted the new product during the Shanghai Blockchain week. At the event, he mentioned that Binance will commence by supporting fiat on-ramp using the Chinese currency Yuan.
Binance plans to launch a new payment system
As per He Yi, the decision for fiat-to-crypto OTC is important to ensure that Binance is competitive in the Chinese market. Additionally, the crypto exchange is planning to develop a payment system that will allow customers in more than 170 countries to purchase digital assets using fiat currencies on Binance website.
Moreover, Fiat-to-crypto Over The Counter (OTC) trading has been a vital part in terms of fiat on-ramp for crypto traders based in China as regulatory bodies prevent the direct connection of exchanges to banks and fiat deposits as part of the ban on initial coin offerings (ICOs) in September 2017.
Read more: Complete BUSD guide - Binance issues USD backed stable coin
On the other hand, Chinese cryptocurrency exchanges like Huobi and OKCoin have shifted their branch overseas and offered crypto-to-crypto trading while using OTC market makers into their trading platforms to allow users to trade cryptocurrencies using Chinese yuan.
Binance's collabs with Paxos
On 05 September 2019, Binance and Paxos Trust Company announced a strategic partnership for launching a fully dollar-collateralized stablecoin called Binance USD (BUSD). Launched Paxos will now act as USD custodian and issuer of BUSD. BUSD will be available later this month on the Paxos platform for direct purchase and redemption 1:1 for U.S. dollars and available on Binance.com for trading initially against BTC, BNB, and XRP.
Rich Teo, Paxos Co-Founder, and CEO Asia, mentioned that: "NYDFS’s approval of BUSD is a vital step towards long term stability in global crypto markets. We are proud that our stablecoin as a service offering enables trusted companies like Binance to introduce products customized for their users. The Paxos brand symbolizes regulatory integrity, consumer protection and transparency for all of our partners"
As for Binance CEO Changpeng Zhao, he quoted: "Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin. We hope to unlock more financial services for the greater blockchain ecosystem through the issuance of BUSD, including more use cases and utility through the power of stable digital assets"