It seems as though the Stablecoin sector is on the way to experiencing major changes. Crypto trading giant Binance, which is currently the largest Crypto exchange in the world by trading volumes, has announced the creation of a combined stablecoin market. Binance currently sees daily trading that is double that of its closest competitor.
Binance’s New Stablecoin Market
Although the Cryptotrading platform has not made any further details available concerning the new combined stablecoin market, it is expected that USDT will feature in it seeing as it was the first stablecoin to have some form of change applied to it.
USDT has been changed to USDⓈ on the platform, with the Crypto exchange adding the encircled S as a symbol for stablecoin. The Crypto exchange has stated that the renaming of USDT market to the combined stablecoin market USDⓈ is in order to enable it facilitate the trading of more trading pairs
Binance’s statement reiterated that USDⓈ is not a new stablecoin in the market but rather just a symbol of its new stablecoin market. It also stated that a wider variety of stablecoins will be available as base pairs.
Binance Putting Appropriate Systems In Place
Understanding the way stablecoin works is very simple. The issuer of the stablecoin has a funds reserve, held in bank accounts, of the value as the stablecoins that have been issued to users. This market largely relies on trust, a quality that is not abundant in the Crypto community. Its advantages are however undeniable. Stablecoins have removed the long processes that were used in depositing funds from exchanges to accounts. Stablecoins also stabilize the value of the dollar when not in a trade by holding them in a dollar-denominated currency.
Although there is a variety of stablecoins in the market at the moment, they are collectively not in a capacity of completely capturing the stablecoin market in a way that will make it thrive. Hence Binance is looking forward to growing this new stablecoin market and is likely looking forward to seeing more stablecoins get into the market. Some of the stablecoins expected to come in are those based on other fiat currencies mainly from Asian countries and the Euro.
It seems that Binance understands that more stablecoins will be getting into the market and to ready itself for this eventuality it is putting the appropriate systems in place. This will allow it to not only be able to offer the best services to its user base, but also have the facilities in place that will allow it to then just add tokens at the appropriate time.
More Stablecoins Expected In The Market
Some of the major stablecoins that are currently available include Paxos Standard, USD Coin, Tether USD and Maker DAO. The Maker DAO, which comes from Ethereum, has been termed as being essentially different in functionality to the other stablecoins. Emin Gun Sirer has described it as the true stablecoin while the other stablecoin he said have been merely pegged.