Photo: ShutterstockOn November 12, 2019, Paxos debuted its Fiat Gateway and have announced that Binance will be its first client in this regard. Its Fiat Gateway means that customers can swap out U.S. dollars for stablecoins on a one-to-one basis and this is one of the first of its kind within the cryptocurrency industry.While this unique service is seeing more widespread attention since its association with Binance, it has actually been available to Paxos users since May 2019 and according to Changpeng Zhao, the CEO of by Binance, this partnership could be the start of even more business between the two companies.Paxos and Binance Binance and Paxos have worked together in the past as back in June 2019, Paxos enabled users to deposit fiat currency into their accounts, with Paxos allowing
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Photo: Shutterstock
On November 12, 2019, Paxos debuted its Fiat Gateway and have announced that Binance will be its first client in this regard. Its Fiat Gateway means that customers can swap out U.S. dollars for stablecoins on a one-to-one basis and this is one of the first of its kind within the cryptocurrency industry.
While this unique service is seeing more widespread attention since its association with Binance, it has actually been available to Paxos users since May 2019 and according to Changpeng Zhao, the CEO of by Binance, this partnership could be the start of even more business between the two companies.
Paxos and Binance
Binance and Paxos have worked together in the past as back in June 2019, Paxos enabled users to deposit fiat currency into their accounts, with Paxos allowing the resulting balance to appear in their PEX stablecoin accounts on Binance. It seems this development was rather successful as the two companies have joined forces once again for the Fiat Gateway initiative.
“The new Fiat Gateway is the fastest, simplest U.S. dollar on/off ramp for our customers. We look forward to working more closely with Paxos to integrate additional solutions,” Zhao said.
They once again joined forces in September 2019 to launch a stablecoin which is regulated by the New York State Department of Financial Services.
What This Means for the Industry
As previously mentioned, this new system will allow users to swap between stablecoins and U.S. dollars with relative ease and this, many believe, will help promote stablecoin across various platforms besides just Binance. It is also a testament to just how popular stablecoins as a concept have become as they are fairly controversial within the cryptocurrency industry. This is because many consider them to not be ‘pure’ cryptocurrencies and others considered them more stable than traditional cryptos.
However, considering how many private firms such as JP Morgan and Facebook are looking towards launching their own stablecoins and how many countries are reportedly looking into their own central bank-issued stablecoins, it seems this initiative will see significant use in the future.
Besides the announcement of the Fiat Gateway, Paxos also announced that a new API will be launching called Stablecoin Swap that will allow users to trade Paxos-based stablecoins on a one to one basis on the platform.
“We created these APIs so our technology can become more widely available and scalable. Our aim is to create financial infrastructure that others can utilize and build on, so together we can create a modern, open financial system,” explained Paxos CEO and co-founder Charles Cascarilla.