A recent report shared by Binance Research pictured the rise of USD-collateralized stablecoins, along with the downfall of traditional BTC and ETH-denominated pairs. As a result, the largest cryptocurrency exchange re-evaluated the redefined trading environment, with BTC as the base currency for comparing the liquidity of each stablecoin.
Apart from the obvious BTC/USDT pair, Paxos [PAX] and USD Coin [USDC] exhibited the lowest BTC median and average spreads, with both figures being below 0.09%. Out of the lot, StableUSD [USDS] lagged the most due to its extremely small supply and dependence on a single exchange, which ultimately resulted in lower volumes and higher spreads.
Additionally, the report also focused on the possibility of Tether having greater price volatility, owing to the recent controversy related to its 74% backing by cash. It also detailed the possibility of a new blockchain formation due to the recent Tether and Tron partnership. On a similar note, Binance Research also stated that the upcoming Ontology-PAX partnership will be aimed at in-DApp usage, which will allow greater participation of individuals and institutions in the Ontology decentralized ecosystem.
In what seems to be a recurring trend for stablecoins, the inclusion of multiple trading pairs will eventually mark the end of blockchain agnosticism. As an endnote, Binance Research also spoke about the increasing participation of non-financial institutions such as Facebook and Samsung. These institutions currently possess the user base to disrupt the entire crypto industry, the report said. Using a risk-averse approach and with greater incentive to disrupt the payments industry, non-financial companies may help in defining future key growth drivers for both the global payments and the digital asset industry.
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ErisX goes all hands on deck to launch a Bitcoin Futures market
ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.
ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.
The CSO explained the benefit of this, stating,
“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “
Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,
“… so there is some efficiency in terms of managing collateral, if you don’t have assets on multiple platforms, it can all be in our clearinghouse.”
Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,
“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”
Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.
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