Binance Exchange Is First Client for Paxos' New Dollar Gateway
The regulated firm is opening up its stablecoin-to-USD swaps facility to third parties, starting with Binance.
Regulated blockchain company Paxos has launched a product allowing crypto exchange customers to more easily fund their accounts with traditional money.
With its new Fiat Gateway service, Paxos said Tuesday that users will be able to execute simple swaps between U.S. dollars and stablecoins, including the firm's own Paxos Standard (PAX).
Notably, Binance, the world’s largest cryptocurrency exchange by trading volume, will be the first to integrate the product. The firm will also have its stablecoin, Binance USD (BUSD), included in the swap options.
“Paxos is a trusted partner that keeps innovating ways to make traditional and digital assets more interoperable. 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,” said Changpeng "CZ" Zhao, Binance's CEO.
Binance may work with Paxos to integrate additional solutions in future, CZ said, though he didn't provide any specifics. The exchange has only recently started adding fiat funding options, having launched deposits in rubles, euros and other currencies in recent weeks.
While Paxos’ Fiat Gateway will facilitate swaps between fiat currency and stablecoins, the company announced a second offering called Stablecoin Swap that allows fee-free 1:1 interoperability between Paxos-powered stablecoins.
Both of Paxos' new services can be integrated into third-party platforms via an application programming interface (API). Previously, these facilities were available only for customers using Paxos.com.
“The APIs will help our technology can become more widely available and scalable,” said Charles Cascarilla, Paxos CEO and co-founder.
Notably, the U.S. Securities and Exchange Commission granted Paxos Trust Company no-action relief in October, allowing it to settle equity securities trades on its blockchain platform for broker-dealers. Credit Suisse and Société Générale would be the first two companies to utilize the service, Paxos announced at the end of last month.
CZ image courtesy of Binance
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