Paxos Trust Company, a regulated financial institution, announced the launch of a new Fiat Gateway on 12 November 2019 and stated that Binance Exchange, the leading crypto exchange by volume, will become the first client to use the product. The solution is designed as a bridge between traditional and digital assets and will enable Binance customers to simply make fiat currencies and stablecoins swaps on a 1:1 basis.
This announcement is great news for Binance as the service will enhance the exchange’s versatility with the service supporting multiple stable coins including Paxos Standards (PAX) and Binance USD (BUSD). Changpeng Zhao, Binance CEO, acknowledged this by saying
Paxos is a trusted partner that keeps innovating ways to make traditional and digital assets more interoperable. The new Fiat Gateway is the fastest, simplest U.S. dollar on/off ramp for our customers.
Binance customers will benefit from using this service that has been available only to Paxos users since May, once the service is fully integrated. It will also add to the list of funding options with the exchange recently adding support for euros, rubles, and other fiat currencies deposits.
This new development marks the third time the two firms have collaborated. They had initially partnered in June enabling Paxos users to make fiat deposits on their platform and having their Binance accounts credited with PAX stablecoins. In September, the two firms collaborated once again to jointly launch a US Dollar stablecoin regulated by the New York State Department of Financial Services. This latest development thus signifies a deepening relationship between the two firms which could blossom further, at least going by Zhao comments saying
We look forward to working more closely with Paxos to integrate additional solutions.
In addition to the Fiat Gateway, Paxos has other solutions like Stablecoin swap, trading APIs, and Paxos Market Data available to qualified businesses. Therefore, it would be little surprise if Binance integrated these other solutions and tools since they can be easily deployed via API available on the Paxos Developer Portal. According to Charles Cascarilla, Paxos CEO and co-founder,
We created these APIs so our technology can become more widely available and scalable. Our aim is to create financial infrastructure that others can utilize and build on, so together we can create a modern, open financial system.
Based on these comments, we can only imagine this as an exciting beginning for a world of new crypto based financial products. The future really looks bright for Binance, its users, and the crypto community at large.