Looks nice Binance has made some great progress on its DEX. I’m looking forward to using this platform next year.
Binance has renamed the USDT Market (USDT) to now be a combined Stablecoin Market (USDⓈ). This is to support more trading pairs with different stablecoins offered as a base pair. We will make a further announcement soon on the exact pairs to be initially moved or added to this market. Please note that USDⓈ is not a new stablecoin: it is the symbol of Binance’s new stablecoin market.
There’s truly never a boring day in crypto. If I understand this correctly, Binance will be combining USDT, TUSD, PAX, and USDC into one “stablecoin basket” called USDⓈ. This is a big deal – my thoughts below.
- Out of the four stablecoins, one sticks out like a sore thumb. USDT is the only one that isn’t regulated and has been the cause of much controversy in the crypto market over the past few years.
- I suspect the creation of USDⓈ signals the start of Binance’s exit out of USDT. If this is the case, it’s a pretty smart move in the sense that it won’t ignite a freakout in an already emotionally unstable market. Psychologically speaking, moving coins to a USDⓈ trading pair allows Binance to smoothly transition out of and reduce USDT allocation in its stablecoin basket over time. It’ll be interesting to see the movement in Binance’s USDT holdings over the next 6-8 months.
- Having a single BTC/USDⓈ trading pair as opposed to separate BTC/USDT, BTC/USDC, BTC/TUSD, and BTC/PAX pairs allows Binance to centralize liquidity to create a deeper liquidity pool for stablecoin-pegged markets. This creates a better experience from both a liquidity and user interface navigation perspective.
- Binance’s choice to append Ⓢ instead of “s”, “S”, or “-s”, or “-S” is worth noting. A special character like Ⓢ is inconvenient to type and no other exchange uses it at the moment. In practice, I think most people are going to have to copy and paste the Ⓢ character from somewhere every time they need to use it. This is a great way to engage in subconscious brand recognition training on Binance’s part.
While BitMEX officially doesn’t provide service to the US investors, they were known to turn a blind eye to those that found their way to the exchange. However, things might be starting to change, as the exchange seemingly started terminating US traders’ accounts. One such report came from famous investor Tone Vays.
The United States SEC has made quite a few moves lately, so I’m not surprised to see BitMEX take this precaution. It makes me wonder if Binance, an unregistered exchange that allows users to withdraw up to 2 BTC per day, will be next to close off services to US-based users. On a side note, I highly recommend Liquid if you’re looking for a compliant exchange – plenty of liquidity on major JPY pairs, open to US citizens, and audited by Japan’s FSA.