Bittrex is adding USD trading pairs. After months of both claims and denials surfacing in the news, one of the most prominent exchanges has now successfully landed a banking partner. This partnership is what will allow them to add USD trading.
Bittrex is currently a leading exchange in the cryptocurrency world. Based out of Seattle, Bittrex has been in operation since 2013. In this time they have seen themselves grow to a top 20 exchange, while dealing with daily volumes of $100 million USD. Speaking on the growth of Bittrex, CEO Bill Shihara stated in an interview with Bloomberg, “It’s been a long path…it’s not just about banks being able to trust Bittrex. It’s about banks being able to trust crypto in general. And I think it’s really showing that crypto is turning to corner in terms of mainstream acceptance.”
While the service launched on May 31st, it is only available to select clientele right out of the gate. Initially only corporate Bittrex customers located in New York, Montana, Washington, and California will be able to capitalize on this opportunity. This will not be like this forever, as Bittrex has stated they will eventually be offering USD trading for all of their clients.
Despite the restrictive nature of this first USD trading offering, it is a very large step forward. It lowers the barrier of entry into the crypto world, and groups Bittrex with a very small number of exchanges to offer this feature. For those that have trust issues with USD pegged cryptocurrencies such as Tether, this new option is a boon. Many do not trust Tether as they have not completed and released a true audit of their operations. This lack of transparency has led some to believe they do not actually have a 1:1 ratio of USDT to USD in their bank accounts. By giving traders the option to trade with a USD base pair, it is now possible to escape the volatility of crypto when necessary, without actually removing money from the exchange.
When touching on the relationship with banks and setting up this new option, Bill Shihara said, “They really do look and pore through the entire business…They want to make sure that we’ve got robust AML/KYC processes, that we’ve got the right controls on our finances. They do background checks and everything. They really look at our business soup to nuts.”
Rival exchange, Binance, had to publicly shut down claims stating that they were adding FIAT trading pairs just a couple of months ago. These claims prompted the CEO of Binance to publicly denounce them stating, “While we can’t predict the future, others keep attempting it on us. Both “news” are not accurate. We are working with banks (to potentially support fiat), but no plans for USD in the short term. No xvg or xpr involved. Be care around predictive “crystal ball” news.”
Overall, this is a fantastic development that will surely result in Bittrex’s popularity rising even more.