Binance USA Opens
Binance, one of the largest exchanges in Europe, have officially opened their subsidiary. Binance USA Opens on September 25, 2019, to positive reviews. Immediately after the severs opened, the chief executive officer for the U.S. Subsidiary spoke with reporters on the future growth of their platform in the United States of America. She noted that unlike regular finance markets in America, the digital currency space hasn’t become a monopoly.
Furthermore, the market isn’t saturated with multiple institutions, which allows for considerable opportunities with this new subsidiary. Catherine Coley mentioned that they’re going after specific demographics with unique trading styles, which will enable Binance USA Opens to comprise a framework for their target audiences moving forward. The endgame is to have an interactive trading experience that differentiates itself from other platforms available to American retail clients. Catherine specified that this would be accomplished with increased dialogue between the client and firm, learning what they desire out of their platform. However, other exchanges in the U.S. aren’t willing to give up a percent of market shares to Binance. One such firm is Kraken.
The Director of Business Development for Kraken, Dan Held, stated to Cryptonews reporters the following: “We see ourselves as pretty well-positioned in the U.S. and Europe. We’re excited that other people want to come and participate in that market. I’m not exactly sure how that’ll impact the business, but we like the guys over at Binance. I think we offer a pretty competitive offering. I think it’ll be interesting to see what happens. There’s a lot of new exchanges popping up all over the place, all the time.”
There’s been a substantial influx of Asian Cryptocurrency Exchanges offering their services to American players in a legal manner. Binance isn’t the first Eurasian Broker to make their mark on the American market, with Huobi and OKGroup both in the process of receiving legal status to operate in the US. Considering that Kraken is already competing in the market with other exchanges like Coinbase and Bitstamp, the competition for market share percentages is growing drastically. Dan Held’s confidence in Kraken could be misplaced.
The Next Step
Regardless of the competition, Binance US is moving forward with their services. The first trade was enacted on September 24 at 12:01 AM. The available currencies provided for trading include Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple and the U.S. Dollar. These currencies apply to thirteen fiat-to-crypto currency pairings; there are also multiple pairings for crypto-to-crypto transactions. The next step for their trading services is to add a second wave of crypto coins. These include ADA, ETC, BAT, ZRX and XLM. The second wave of coins is anticipated to be released on Wednesday, October 2.
Catherine publicly spoke about the future steps for Binance. The young chief executive officer mentioned that their beginning the framework for future operations and will follow the outline of a map created by trading projections from players. She noted that in the first few weeks of service, it would be hard to determine which coins are best for liquidity and which aren’t healthy for the exchange. Coins will always be added or removed based on their liquidity capabilities. She confirmed that over the next twelve months, thirty coins would be considered and tested on Binance USA Opens. Depending on how traders react to each currency, they will be accepted permanently or terminated.
Binance US legally can operate outside of the state’s borders, working as a legal North American exchange. This means clients from Canada and Mexico both have access to the services enabled at this new exchange, but all transactions must be carried out through the U.S. Dollar. Binance US plans to add in the Peso and Canadian Dollar as viable currency options in the coming months. Considering that there are zero fees for this exchange, clients from across the continent would be foolish not to experience the trading platform services enabled at Binance US.
Catherine Coley was asked if Binance will manage the free trading fees for new states as they are added to the list of available jurisdictions Binance US can operate. She confirmed that this would be enacted, as it’s only fair for new clients to receive the same services everyone else did on the original launch day. Considering that Binance US has to receive state-by-state approval, it could be a while before Binance has legal admission to operate in all fifty states. Right now there are thirteen states excluded from Binance, including New York and Washington.