South Korea’s Bithumb To Launch Global Decentralized Exchange

Bithumb, the second largest cryptocurrency exchange in South Korea, has announced that it would be launching a new decentralized exchange (DEX) within the next month.

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Bithumb, the second largest cryptocurrency exchange in South Korea, has announced that it would be launching a new decentralized exchange (DEX) within the next month.

The exchange if following the footsteps of Binance which is making a similar move.

Bithumb partners with Third-Party DEX Protocol

According to the report by Business Korea on October 4th, the exchange, which would be called Bithumb DEX, would be launched globally by the end of the month.

Bithumb makes use of R1, a decentralized exchange protocol that was developed by OneRoot Network, a blockchain startup with its own cryptocurrency RNT.

Bithumb revealed that the partnership between the two companies is limited to the decentralized exchange at the moment. A source close to the situation told Business Korea that Bithumb is making plans to ensure that the exchange is available to users worldwide.

According to the joint press release by the two firms, the DEX protocol separates order matching and order execution, with RNT adding that the function increases the security and matching efficiency of the platform.

Decentralized exchanges growing rapidly

Decentralized exchanges are becoming popular around the cryptocurrency world as they enable users to trade peer-to-peer via an automated system. Client funds are not stored while they are also less vulnerable to thefts the way centralized exchanges are.

However, Business Korea stated that DEX offers relatively slower trading speeds than their centralized counterparts.

In the press release, Bithumb stated that they are committed to becoming the world’s first large-scale centralized exchange that provides decentralized trading services.

The exchange added that with the unique structure of R1 protocol, Bithumb and all future R1-based exchanges will be able to share order data and liquidity. This will give users with better trading depth and experience, and forming a globally distributed business system.

Business Korea cited some officials of the exchange who stated that the nature of the partnership is solely technical. They added that Bithumb DEX will be operated by its overseas subsidiary.

RNT outlined that their project is to make it possible for exchanges like Bithumb to develop their own decentralized platforms.

Appealing to more than Korean users

Even though Bithumb is one of the most popular cryptocurrency exchanges in the world, most of its users are Koreans. The exchange is looking to become more appealing to the rest of the world and it believes a DEX would help towards that goal.

The latest decision by the company is a way for them to compete with other leading exchanges in the global market.

Decentralized exchanges have received global attention and that is a feature that Bithumb is looking to use.

Bithumb isn’t the only exchange in South Korea to have ventured into the DEX space. Business Korea stated that Upbit, the largest exchange in the country has entered the DEX space through its investment in Allbit.

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