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Paxos Standard To Be A Base Token on Binance

Last Updated October 2, 2020 6:56 AM
P. H. Madore
Last Updated October 2, 2020 6:56 AM

An exchange is only as good as its liquidity. There are hundreds of exchanges to choose from, and many have chosen Binance, which was originally based in China and funded through an ICO. Binance is far and away the largest exchange in the world by volume and users, most days almost doubling the volume of its nearest competitor.

As we reported yesterday, Binance is in the process of creating a combined stablecoin market they’re calling USDⓈ, and now within that market Paxos Standard is to be a base token, CCN.com has learned.

PAX was still only trading against USDT in the market, but according to a press release received Tuesday morning, several other pairs will soon be added to the exchange.

When trading commences, PAX will have six trading pairs listed on Binance’s USDⓈ Markets against BNB, BTC, ETH, XRP, EOS and XLM.

USDT is still by far the most used stablecoin on Binance, but it seems they are testing the waters with other tokens. The situation prior to the addition of the above-named pairs was that the user would have to convert PAX to USDT in order to trade on most of the pairs in the USDⓈ market listings. While this is still somewhat the case following the move, it demonstrates that Binance is looking to experiment. And, for what it’s worth, at the time of writing PAX was trading at a premium against USDT – 2 cents. Over the course of $1 million that adds up to a $20,000 arbitrage opportunity. For its part, Paxos’ Dorothy Chang, head of Marketing, says that clients who want to see more pairs should use the Pax token on the exchange and request more pairs be added:

More will be added according to customer demand, so if people want more- they should keep asking Binance to add more pairs to trade with PAX.

Trading of the new PAX pairs should open on the morning of November 29th. If the volume on these new pairs is significant enough, Binance will add more pairs, as it has done with USDT. There is still no word on when or if Binance will integrate USDC or GUSD. To be fair, these tokens are both issued by competing exchanges – in the case of USDC, the creator, Circle, owns Poloniex, which is senior in age to Binance and would love to unseat it as the king of exchanges. But Paxos is issued by itBit, which also operates an exchange.

The creation of the USDⓈ Market on Binance opens speculation that Binance may be working on its own stablecoin offering. They certainly have the scratch to back it, but historically they have shied away from too much interaction with the banking system, preferring to be a clearinghouse and premier trading platform for multiple cryptocurrencies.

Featured image from Shutterstock.