The future use of stablecoins in cryptocurrency is almost guaranteed. Numerous exchanges are trying to add these trading pairs in quick succession. OKEx, one of the bigger altcoin platforms, decided to add four stablecoins in one go. An interesting decision, primarily because the exchange only supported USDT up until this week.
OKEx Beefs up Its Offerings
A few years ago, fiat currency pairs were the main gateway for cryptocurrencies. A few exchanges provide direct exposure to trading with USD, EUR, GBP, and so forth. At the same time, dealing with fiat currencies is subject to compliance scrutiny. For some trading platforms, it creates a less favorable solution to pursue under the current circumstances.
A viable alternative comes in the form of stablecoins. Currencies such as USDT, TUSD, PAX, and GUSD can be purchased with fiat currency directly. They are also offered by various exchanges to trade for Bitcoin and several altcoins. As such, it seems platforms are favoring stablecoins instead of pursuing fiat currency trading. OKEx appears to be thinking along the same lines right now.
The company recently made it clear they are adding additional stablecoins. According to OKEx, TUSD, GUSD, USDC, and PAX will all be available. Deposits are already active since yesterday, and spot trading for BTC goes live today. It is also possible to trade these new currencies against Tether’s USDT. More stablecoins pairings are making their way to the cryptocurrency industry as of late.
Tether Concerns Drive Change
This new decision by OKEx is not entirely surprising. Their reliance on USDT cannot go on indefinitely. Tether’s pegged currency has been subject to a lot of scrutiny for over a year now. Additionally, its value has not maintained the $1 level over these past few days. That further confirms for critics that USDT is not the “stable” coin people want it to be.
OKEx is one of the first platforms to support stablecoins issued by other exchanges. Both Gemini and Paxful issued their currencies a few weeks ago. Spreading more liquidity across different platforms is a very promising sign in this regard. It also gives traders more choice, which is all one can ask for. Diversification is key in cryptocurrency, even where stablecoins are concerned.
The big question is what the future holds for USDT. OKEx still supports trading of this currency despite the ongoing “issues.” There is no indication that the situation will change overnight. However, if the coin fails to reclaim the $1 valuation, a big problem will ensue. It’ll be interesting to see what the near future holds for the stablecoin.
What do you think about OKEx adding these additional stablecoins? Let us know in the comments below.
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