Binance cryptocurrency exchange—one of the biggest in the world—has announced support for Circles burgeoning stablecoin on its platform. The exchange disclosed this in a blog post published on its website today November 15.
According to its post, trading pairs for Circle USD [USDC] will be activated on Saturday, Nov. 17.
The post read:
“Binance will open trading for USDC/BNB and USDC/BTC trading pairs at 2018/11/17 03:00 AM (UTC). Users can now start depositing USDC in preparation for trading.”
Since the launch of the stablecoin by payment processing firm, USDC have seen a growing adoption among crypto exchanges and other crypto platforms. The stablecoin which is maintained at 1:1 to the U.S. dollar was created to further advance the adoption of cryptocurrency for cross-border transactions.
Circle had explained:
“Individuals and institutions can enroll in this service to deposit U.S. dollars from bank accounts [and] convert those dollars into tokens usable everywhere the internet reaches.”
As Smartereum reported in September, Circle’s stablecoin got the support of major crypto exchanges including DigiFinex, CoinEx, KuCoin, Coinplug, and XDAEX Circle-owned Poloniex exchange. OKEx, currently the biggest global trading platform, also announced support for USDC immediately after release while U.S.-based Coinbase also announced support for the stablecoin last month.
Stablecoins generally have been criticized for lack of transparency. Many stablecoin issuers claim that each token is backed by an equivalent value in the fiat currency it is pegged to, stored in a bank. Most issuers are able to show sufficient proof of this balance held, however.
Binance added in its statement that USDC will publish the balances of USDC as well as corresponding USD held in a bid to make its activities more transparent.
“For increased transparency, USDC has engaged a top-ranking auditing firm to release monthly balance attestations of the corresponding USDC and USD balances held/issued.”
Circle, as was reported in September, employed professional services firm Grant Thornton to assist the management in verifying its U.S. dollar reserves.
Binance Approach Towards Stablecoin
Stablecoins are one of the hottest topics in the cryptocurrency space at the moment following the releases and listing of several stablecoins. Gemini exchange, Paxos, and Circle are only a few of the many operators that have recently issued stablecoins to river the tether USD.
In September, Binance included the Paxos dollar-pegged Stablecoin. Binance CEO, Changpeng Zhao remarked at the time that he expected to see more stablecoins.
He was quoted as saying:
“Regulated stable coins [sic] serve as a middle ground where regulators maintain control, but the token also offers far more freedom than traditional fiat for users … Hope more will copy/follow/improve, and for other fiat currencies too.”
The exchange also noted that trading the newly listed USDC will attract a trading fee of 0.1 percent and users are eligible for 25 percent discount when they use/hold Binance’s native BNB tokens. It also charges a withdrawal fee of 1.07 USDC.