Bittrex has become the latest major exchange to look to the future with its announcement that it will soon allow USD trading. But is there more to this move than initially meets the eye?
An Obvious Choice
On the face of it, this may seem a pretty obvious choice. As more and more investors look to get on board with crypto trading, and the market itself aligns itself more closely with the established order of fiat, it makes sense to increase accessibility. CEO Bill Shihara had this to say about the development:
We will be doing USD trading; this won’t be open to everybody, available for the majority of our customers as well as foreign partners that build on top of us.
This is where it gets a bit more interesting. The “foreign partners” he mentions include South Korean company Upbit. Upbit are interested in liquidity and Bittrex are interested in online retail, so this is an exchange of technologies and markets that makes great sense for both companies. But it doesn’t stop there…
At present, a great many of Bittrex customers go through Coinbase initially. Why? Well, Coinbase is the definitive stop-off for people to trade their USD in for Bitcoin. This announcement from Bittrex, however, eliminates the need for that extra step. This could mean that Coinbase’s current customer base is in danger.
And What About Tether?
It’s an interesting time to make this announcement, bearing in mind that Tether have just received a subpoena amid fresh concerns surrounding its legitimacy. Adopting USD on Bittrex could signal the beginning of the end for its current relationship with the much-maligned Tether, which is supposedly backed by the US dollar.
All in all, Bittrex’s announcement will certainly raise more than a few eyebrows!
How will this affect Coinbase? And Tether? Look into your crystal ball and share your predictions with us!