An exchange can only be as good as its liquidity is. There are a lot of exchanges from which we can choose, and a lot of people choose Binance, which was originally based in China and funded through an ICO. Binance is actually far and away the world’s largest exchange by volume, as well as users, most of the days almost doubling the volume of its nearest competitor. As it was reported yesterday, Binance is now in the process of creating a combined stablecoin market which is called USDⓈ and now within that market Paxos Standard is the one to be the base token.
Binance will create the combined stablecoin market
Lately, PAX was still only trading against the USDT in the market, but according to one source from Tuesday, some other pairs are going to be soon added to the exchange.
When the trade is going to start, PAX is going to receive six trading pairs listed on the USDⓈ Markets of Binance against BNB, BTC, ETH, XRP, EOS, and XLM.
By now, USDT remains the most used stablecoin on Binance, but it looks like they are testing the waters with some other tokens too. The situation before the addition of the pairs which we mentioned above was that the user is going to have to convert PAX to USDT so to trade on most of the pairs in the USDⓈ market listings.
Binance looks forward to experimenting
While this may be the case which follows the move, it actually demonstrated that Binance is now looking forward to experiment. Also, for what it is worth, PAX was trading at a premium against USDT – 2 cents.
Over the course of $1 million which adds up to a $20,000 arbitrage chance. And on its part, Dorothy Chang of Paxos, who is actually the head of marketing, said that the clients that want to see some more pairs have to use the PAX token on the exchange, as well as more pairs will be required.
She said that more is going to be added, according to the demands of customers, so if people want more, they will have to keep asking Binance to add some more pairs to trade with PAX.
The trading of new PAX pairs opening today
The trading of these new PAX pairs should be open today, on the 29th of November. If the volume on those PAX pairs is vital enough, Binance is going to add more pairs as it has done with USDT.
Also, there is still no information about the time or even if Binance is going to integrate USDC or GUSD. Such tokens are both issued by competing exchanges, for example, when it comes to USDC, the creator, Circle, owns Poloniex, which is the senior in age to Biance and is going to love to unseat it as the kind of exchanges. However, Paxos is issued by itBit, which also operates an exchange.
This creation of the USDⓈ Market on Binance will open up some speculations that Binance may be working on its own stablecoin offering. They will probably have the scratch to back it, but historically they also shied away from too much synergy with the banking system, preferring to be a clearinghouse, as well as the premier trading platform to several cryptos.