Binance to Launch Fiat-to-Crypto OTC Trading and Expand Services in Chinese Market
Binance to Introduce Over-the-Counter Trading for Fiat Currency Gateways
In a strategic move to cater to the Chinese market, cryptocurrency exchange Binance has announced plans to add over-the-counter (OTC) trading to its platform within the next month. This new service will provide users with fiat currency gateways, specifically supporting the Chinese yuan for fiat on-ramp.
During the Shanghai Blockchain Week, Binance’s co-founder and chief marketing officer, He Yi, revealed the exchange’s intention to dedicate more time and resources to compete in the Chinese market. The addition of OTC trading for fiat currencies is seen as a critical step in providing Chinese traders with a way to buy and sell cryptocurrencies, especially since local authorities have imposed restrictions on direct connections between exchanges and banks.
Other Chinese exchanges like Huobi and OKCoin have already moved overseas and offered crypto-to-crypto trading, utilizing OTC market makers to facilitate transactions in Chinese yuan. Binance’s decision to introduce OTC capabilities comes as the exchange continues to expand its reach and strengthen its connections to mainstream finance.
In recent weeks, Binance has made significant moves to enhance its offerings, including the introduction of two crypto-futures trading platforms for testing and the acquisition of a crypto derivatives exchange. Additionally, the exchange launched a dollar-based stable coin, Binance USD, which received approval from the New York Department of Financial Services.
Binance is positioning its stable coins as alternatives to other digital currencies like Libra, and has also announced plans to start accepting U.S. customers through a partner starting September 18. The exchange further solidified its presence in the industry by investing in Mars Finance, a Chinese crypto data and media company.
With these developments, Binance is poised to strengthen its position as the world’s largest cryptocurrency exchange by trading volume, offering users more options for trading and investing in digital assets.
