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Binance claims its share of the lucrative stablecoins market

  • Binance focuses on stablecoins backed by national fiat currencies.
  • The move may challenge Tether (USDT) positions.

The world's leading cryptocurrency exchange by trading volume will launch its own stablecoins within two months, Bloomberg reports. 

While the first stablecoin backed by British pound was announced earlier this month, Binance has far-reaching plans to issue more coins pegged to different national fiat currencies to ensure diversity and allow traders to facilitate transactions and protect their funds during periods of j=high market volatility. 

"From the users' perspective, only certain portions of the world use the dollar. Other users use other currencies, and we feel it should be reflected in stablecoins as well," Binance  Chief Financial Officer Wei Zhou explained in a phone interview with Bloomberg. 

According to Zhou, Binance has no plans to issue dollar-pegged stablecoins; it will focus on other national currencies and allow other companies to launch their stablecoins on the Binance Chain ledger in partnership with the exchange.

"The goal is to make stablecoins available for more of the world's currencies, such as the euro and the yen," Zhou said.

Experts believe Binance stablecoins may undermine the positions of Tether that has been an undisputed leader with over 98% share of thee stablecoins market. According to Paolo Ardoino, chief technology officer of Bitfinex, the Binance's dominance among the cryptocurrency exchanges may serve as an advantage and help it to challenge Tether.  
 

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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