Crypto exchanges Bitfinex and Ethfinex have enabled support for six of the market’s top stablecoins. The sibling exchanges have recently added USD Coin (USDC), TrueUSD (TUSD), Paxos Standard Token (PAX), and Gemini USD (GUSD), providing further support for their MakerDao’s Dai and Tether’s USDT. The said stablecoins can be traded against the U.S. dollar.
Ethfinex, which was introduced this year, is the ERC-20 exchange unit of Bitfinex. Intended for Ethereum token trading, the crypto exchange is currently centralized although the team aims to convert it into a decentralized exchange in the future.
In a blog post dated December 4, Bitfinex announces:
“From today, customers of Bitfinex and Ethfinex will be able to trade all six major stablecoins on both exchanges. At Bitfinex and Ethfinex, we’re dedicated to providing a high quality, unbiased meeting place for every ecosystem and customer.”
Bitfinex pledges it will continue to be “unbiased” considering the company’s inherent association with Tether. The fact that Bitfinex and Tether have the same CEO, as well as their interoperations (which according to critics remain ambiguous) have compromised Tether’s credibility. This has compelled Bitfinex to add to competing initiatives.
Still, volatility remains to be one of the most serious obstacles for cryptocurrencies. Virtual assets are vulnerable to crazy price fluctuations which results in sudden and unanticipated losses for traders.
Many believe that stablecoins have the ability to resolve the problem with volatility. Stablecoins are pegged to different types of fiat currencies like the U.S. dollar, the euro, or even the Japanese yen, which actually mitigates the risk of price fluctuations, providing investors with intensified security. There are also those that are tied to digital currencies like Dai, which is pegged to the Ether.
Bitfinex and Ethfinex are the first crypto exchanges to offer Dai, an Ethereum-based stablecoin, to their users. The inclusion of the four new coins comes after Bitfinex launched U.S. dollar and euro fiat pairs for Tether just this November.
Rolled out in 2014, Tether is the oldest and most recognized stablecoin on the sister exchanges’ platform. Until 2018, Tether, which is supposedly pegged to the U.S. dollar, is the only stablecoin available to crypto traders. The advent of new stablecoins has elevated Tether’s competition.
Deposits and withdrawals for the six coins are exclusive only to verified traders on the two platforms as of press time, while trading itself continues to be unaffected by a user’s verification.
Towards the end of 2018, stablecoins have experienced growing adoption among exchanges and platforms. For instance, Binance has recently included Paxos as a base currency to its trading platform. In mid-November, the crypto exchange has also announced its support for the USDC. Furthermore, Bitcoin payment firm BitPay has also recently included PAX to its platform, paving the way for both employers and employees to send and receive payments in the form of the stablecoin.