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Bitfinex and Ethfinex cryptocurrency exchanges now support trading for all six major market stablecoins. Adding to its MakerDao Dai and Tether USDT support, twin platforms have recently quoted USD Coin (USDC), TrueUSD (TUSD), Paxos Standard Token (PAX) and Gemini USD (GUSD). All the stablecoin available on the stock exchanges will be traded against the US dollar.
Launched in 2018, Ethfinex is the ERC-20 exchange arm of Bitfinex. Built for the Ethereum token trade, the exchange is centralized at the moment, but the team plans to turn it into a decentralized exchange in the future.
Bitfinex made the announcement in a post dated December 4, 2018, stating:
"As of today, Bitfinex and Ethfinex customers will be able to exchange all six major stablecoins on both exchanges, and we are dedicated to providing an impartial and high-quality meeting place for each ecosystem and customer at Bitfinex and Ethfinex", we read in the post.
The promise of Bitfinex to remain "impartial" is noteworthy given the intrinsic links of the exchange with Tether. Both Bitfinex and Tether share a CEO and the interactions between the two entities, which critics have considered opaque, have challenged Tether's credibility, paving the way for the competing projects that Bitfinex has just listed.
One of the biggest problems arising from the cryptocurrency space is volatility. Many digital resources are known to have wild price fluctuations that can cause unexpected and fast losses to traders.
Stablecoins are considered a viable solution to this volatility. These currencies are typically linked to various forms of legal action, such as the USD, the euro or the yen, reducing the possibility of price fluctuations and offering investors more security with their operations. Others, like Dai, are guaranteed by cryptocurrencies, ie ether.
Bitfinex and Ethfinex were the first digital currency exchanges to present their clients to the Dai, a stablecoin based on Ethereum. The addition of the four new coins follows Bitfinex, which launched the USD and EUR fiat pairs for Tether in November of this year.
Tether, the oldest and most popular among the stablecoine offered by the two stock exchanges, was launched in 2014. Presumably linked to the USD, it was the only stablecoin available for the cryptographers up to this year , when the market saw the addition of several new stablecoins that brought Tether's competition to higher ground.
At the time of printing, both deposits and withdrawals for these six coins are reserved only for traders verified on both platforms, although the trading itself is not affected by a customer's verification status.
Stablecoin witnessed an increase in trade and the adoption of the platform in the final part of 2018. Binance, the exchange of cryptocurrency Binance, for example, recently added Paxos as a base currency to its trading platform, and the exchange he also announced support for USDC in mid-November. Bitcoin payment platform BitPay recently added PAX to its system, allowing both employers and employees to send and receive payments in the stablecoin.
