In March, Binance CEO spoke of the ongoing talks with Maltese banks to offer USD and other fiat transactions after the cryptocurrency exchange relocated its head offices to Malta.
“We are very confident we can announce a banking partnership there soon,” Zhao said. “Malta is very progressive when it comes to crypto and Fintech.”
The company recently announced its plans to move base from Hong Kong to Malta as regulations from the Chinese government hindered potential growth of the exchange. The Mediterranean island ranks as most welcoming government to cryptocurrencies together with Japan. Binance relocation will see the company add various developments to make trading easier such as adding more fiat currencies pairs such as EUR, JPY and GBP trading pairs on the exchange.
Binance adds XVG/USD and XRP/USD pairs
Binance announced plans to add fiat to crypto payments in the near future with Ripple (XRP) and Verge (XVG)both looking to benefit from the move. XRP/USD and XVG/USD pairs will be the first to be listed on the exchange in the coming weeks or months. This comes days after the exchange planed on adding ADA/BNB and ADA/USDT pairs to the platform. The addition of USD pairs breaks the dominance of Coinbase in the industry as the adoption of XVG and XRP is also set to increase.
Ripple (XRP) benefited from this news as the price of one coin hit $0.8 for the first time in a month few hours after the announcement. The coin remained relatively stable at the $0.5 range in the past week prior to this announcement. This will be the largest exchange trading XRP/USD pair with adoption of XRP expected to increase significantly. Back in January, several Binance users asked for the addition of XRP to the exchange but the exchange gave a signal for a later date. This will be a first mover advantage to Binance to convert Ripple investors with fiat to the exchange. This comes at a time that Coinbase, one of the largest competitors to Binance announced of its plans to add more coins and tokens to the exchange.
To Verge (XVG), this recent addition of the XVG/USD pair will serve as redemption for the coin recently blasted for its ‘major’ partnership with Pornhub. Currently Binance carries out 50% of all the XVG trades with Bitcoin and Ethereum pairs. Addition of USD to the platform opens up a new market with only 1% of the total XVG trades are carried out using USD or any fiat currency. Verge investors welcomed the announcement positively as the price increased by 10% this Friday, April 20th to hit $0.07.
Binance to list BNB next
With the current relocation to Malta, regulation on the exchange is flexible unlike in Hong Kong hence giving Binance a leeway to introduce better and simpler functions of the exchange. With XRP and XVG getting pairs, Binance Coin (BNB) will be the next coin to be listed on the exchange. This is due to the fact that Binance is always looking for cheaper and faster ways to make transactions on the platform. BNB aims at reducing the trading fees while incentivizing the traders on the platform.
Binance currently ranks moderately in pricing their transaction fees. Binance charges are less than 0.1% of the transaction. However if we factor in the 50% discount of trading using Binance Coin (BNB), the costs are far cheaper than any of the exchanges. BNB promises to be among the top contenders to be trading USD pairs on the exchange. This will make the trading on the exchange even cheaper.
The Hong Kong based cryptocurrency exchange has over 6 million subscribers as at time of press. The exchange trades over 60 coins and tokens on the platform with BTC, ETH and XVG pairs leading the way. Binance is currently the highest trading exchange in terms of daily volume rankings with over $2 billion worth of crypto traded. This recent addition of USD pairs may well push the adoption of the exchange to even better trading volumes.