In an announcement earlier today, the team at Binance let the crypto community know that it was going to open trading for three new stablecoin pairs: PAX/TUSD, USDC/TUSD and USDC/PAX. The announcement went on to provide a time frame for the new additions as follows:
Binance will open trading for PAX/TUSD, USDC/TUSD and USDC/PAX trading pairs at 2019/01/08 4:00 AM (UTC).
Why Pair Stablecoins For Trading
Keen crypto enthusiasts and traders have noticed that the stablecoins pegged to the USD sometimes deviate from the $1 mark. An extreme case of this example, was when there was fake news that Binance was delisting Tether (USDT) due to the insolvency issues that were being faced by the bank the firm was using at the time to hold its USD reserves.
These rumors started circulating around the 15th of October 2018 and they resulted in USDT dropping by around 5% to a value of $0.95. A few hours later, the rumors were debunked as fake news.
Slight Deviations to the $1 Mark by Stablecoins
Further checking coinmarketcap.com, we find that the 5 major stablecoins are showing a slight deviation from the $1 by as much as 1 cent. Doing the math, this is a 1% price difference that can be exploited with stablecoin pairings such as the ones provided by Binance. A screenshot of the current deviation from the $1 mark can be found below.
Binance’s Combined Stablecoin Market
The three new stablecoin pairs will be listed in Binance’s Combined Stablecoin Market (USDⓈ) that was launched late in November last year. The move was meant to provide more trading pairs with different stablecoins as a base. The team at the exchange went on to clarify that the new category was not a single stablecoin in itself.
Some crypto enthusiasts were quick to explain the move for a Combined Stablecoin Market as a way of Binance catering for institutional investors who have their doubts regarding Tether (USDT). Another explanation provided was that Binance was simply answering the call from traders to offer more options on the platform.
What are your thoughts on Binance listing the 3 stablecoin pairs of PAX/TUSD, USDC/TUSD and USDC/PAX? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.