Binance, Paxos team up to simplify exchanging stablecoins for fiat

Fintech startup Paxos has partnered with leading cryptocurrency Binance to integrate a new deposit gateway on Binance’s trading platform.

In September 2018, Paxos announced the launch of a new stablecoin – “Paxos Standard” or PAX – fully collateralized 1:1 by the U.S. dollar. PAX is approved and regulated by the New York State Department of Financial Services (NYDFS).

According to the official release, the new gateway will allow traders to exchange fiat directly for PAX on the Paxos platform. They simply need to wire fiat to the Paxos platform and receive the same amount in PAX directly in their Binance accounts.

Paxos said that PAX is “the most liquid, fully-backed stablecoin available on Binance” adding that PAX users will benefit from optimal price discovery. In addition, no fees would be charged and no minimums or maximum threshold requirements would be imposed for redeeming PAX.

“PAX is a liquid, fully-backed stablecoin available on Binance.com. Easing the PAX gateway on Binance.com means traders will benefit from the liquidity of PAX trading pairs and move more easily between fiat and crypto. We look forward to working with Paxos to grow the ecosystem,” Binance CEO Changpeng Zhao, said.

Earlier this month, Zhao confirmed plans to issue their own GBP-pegged stablecoin. Chief Financial Officer Wei Zhou also confirmed the development to Bloomberg saying that the stablecoin will be issued “in a matter of weeks to a month or two.”

More recently, Binance also revealed that it will issue a number of crypto-pegged tokens on Binance Chain, its proprietary blockchain platform. The first such token to be issued will be BTCB, a BEP2 token pegged to Bitcoin.