Bittrex, along with exchanges such as Binance and Upbit, has gradually moved away from binding, which for a long time was the only coverage available in dollars.
It has been speculated that the desire to list other stable currencies and eventually swing into the USD was born in part from the desire to be less dependent on the notoriously opaque strap. Whatever the reasoning, Bittrex has now secured the banking facilities necessary to enable the trust and escrow business, and in Malta it is believed that Binance is following its example.
Initially, the Seattle-based exchange will offer the USD paired against BTC, Tether (USDT) and TrueUSD. This means that traders can exchange dollar-linked tokens, which could be useful if they need to send dollars to another exchange, or in the case of a stable slip of their pair (the dollar), as happened to TrueUSD with the news of its Binance listing.
Bloomberg reports that Bittrex signed an agreement with Signature Bank of New York. This will allow corporate clients in certain U.S. states to make fixed deposits.
While retail investors may not initially benefit from this installation, Bittrex hopes to eventually extend the service to all users residing in the states where it is licensed.
As of yesterday, May 31, corporate traders in Washington, California, New York and Montana can make fixed deposits. Due to the current restrictions, which will prevent most of the three million Bittrex users from participating, the volume of USD trading is likely to be low to begin with.
"It's been a long road to a banking deal," Bittrex CEO Bill Shihara told Bloomberg.
"It's not just that the banks can trust Bittrex. It's about banks being able to trust crypto in general. And I think it's really showing that cryptography is turning the corner in terms of mainstream acceptance.
"They really look at and analyze the whole thing," Shihara said. "They want to make sure we have robust AML/KYC processes, that we have the right controls over our finances. They do background checks and everything. They're really looking forward to what we're doing..
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