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Cryptocurrency News | Bitfinex opens Platform to Major Tether Competitors

Bitfinex

Bitfinex and it’s associated token-trading platform Ethfinex now have a six Stablecoins for trading on both platforms. For several years, the only stablecoin listed was Tether. In order to cash out Tether, the user would pay a withdrawal fee with an offered 1:1 redemption. However, this was recently revoked which led to Tether reviving their own redemption program. An official announcement reads,

“At Bitfinex and Ethfinex we are dedicated to providing a high quality, unbiased meeting place for every ecosystem and customer. We were the first to introduce alternative stablecoins onto our platform, including Dai (an Ethereum collateralised stablecoin), and now proudly introduce the following established stablecoins: USDC, True USD, Paxos, and Gemini USD. All stablecoins on Bitfinex and Ethfinex will be traded against USD.”

Along with Tether, Paxos Standard, and USDC both exchanges also offer Dai. It is one of a kind stablecoin  built on Ethereum. After Gemini, Bitfinex is one of the major exchanges to list Dai and enable it’s usage. The exchange also offers EURT, the EURO version of Tether. While previously the user had a guaranteed 1: 1 dollar ratio, they will now have varying rates ( quite small). It is plausible that arbitrage opportunities will be created across Stablecoins and currencies.

Bitfinex

                                                                                                     Image Courtesy: Trading View

One may be able to purchase Stablecoins for less than a dollar at instances and sell it for a slightly higher price. However, this strategy is more suited to institutional investors and is highly likely to stimulate renewed volume at both the exchanges. 

Stablecoins and the Crypto Market

Despite Tether’s presence for quite a few years now, the Stablecoin market is still in budding phases.

It is predicted that as more altcoins and tokens flood the market, there will be an increased number of Stablecoin offerings. Bitfinex appears to support anything customers might use while Binance seems reluctant to add stablecoins without any substantial demand.

However, the traders expect Asia-specific stablecoins for currencies like the Chinese Yuan and the Japanese Yen. These additions will support crypto traders build a global outreach and have an unprecedented ability to cross connect with continents in terms of financial liquidity. This will in turn enable new payment platforms not previously possible.

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