On a day devoid of any major news on crypto, Binance, the largest cryptocurrency exchange by volume, has announced plans to add USD to crypto assets in the near future.
This announcement follows hot on news that the site was adding ADA/BNB (BNB is Binance coin) and ADA/USDT to its trading pairs. The latest development would see a few crypto coins get paired with USD. It is no doubt a great move by an Exchange platform that accounts for a majority of the world’s cryptocurrency trading.
In a move that would make trading much easier, Binance has indicated a plan to have users on its site access cryptocurrency assets directly via fiat. This has been the most troubling aspect of trading in coins as there has been no direct way to purchase most of the crypto via traditional fiat money.
What the move by the company behind the BNB coin means is that investors now do have an opportunity to use those dollars without having to first buy BTC or ETH. As a result, we expect to see more pairings against the US dollar.
As it stands, Binance could be about to double its daily volumes, judging from the many excited investors who’ve had trouble finding the right pairs to trade. The excitement shouldn’t surprise at all.
Of course, someone would point out that there is Tether (USDT) that allows investors to purchase cryptocurrencies directly on some exchanges like Bitfinex and Poloniex. That may have been a novel idea, but perennial controversy about the stable coin’s back up meant investors’ trust had been eroded.
Several investors have expressed their approval of the move, terming the news “big news”. One specified, saying that it relieved them of the worry they had with Tether.
We should expect more trading sites to follow suit. Even though this appears to be a unilateral move by Binance, it won’t be surprising to see other sites like Bittrex make a similar announcement.
While it’s expected that most of the crypto assets will be paired, it appears the frontrunners are Verge (XVG) and Ripple (XRP). The market should be ready to ready to see a spike in trading volumes of these cryptocurrencies, similar to what was witnessed with Cardano’s ADA.
Just a day after being paired with BNB and USDT, the coin has seen an increase in its 24-hour volume, from $181 million on April 18, 2018, to over $250 million a few hours into the European trading hours.
The pairs XRP/USD and XVG/USD are to be the first on offer, further opening up visibility for the two coins. It is a kind of sweet victory for XVG and XRP two assets that have tried get listed on Coinbase countless times without success.
For Verge, this could be a good footing as it seeks to get out of the tight spot its recent partnership put it. On the other hand, the pairing of Ripple with USD consolidates the company’s resolve that XRP doesn’t constitute a security as feared. It is hoped that Coinbase will take the cue and consider listing XRP, the currency that Ripple hopes to use to transform cross-border payments.
As with most other events surrounding cryptocurrency, the news will likely see increased trading activity around the two coins, especially Ripple which is a top project with very high potential for success. Investors should brace themselves for price surges should this move materialize.
The news comes only weeks after Binance moved some of its operations to Malta after running into trouble with Japanese authorities. Early indications are that that relocation could as well be part of the new developments.
According to Binance CEO Changpeng Zhao, the platform is in talks with local Maltese banks to hammer a related deal. The details of the deal include facilitating easier deposits and withdrawals to smoothen the process of using fiat to purchase cryptocurrencies.
In terms of what the deal will yield for the cryptocurrency, only time will tell. However, it could change the fortunes of a few coins.