Why Binance, the World's Biggest Crypto Exchange, Is Enthusiastic About Stablecoins

Binance has unveiled a series of new products and features relating to stablecoins - with the world's largest cryptocurrency exchange describing these digital assets as "An efficient fiat gateway into crypto."

Stablecoins are often pegged with a fiat currency, meaning one unit can equate directly to 1 euro or $1. With new coins emerging all the time, the industry is evolving quickly, prompting the company to launch a stablecoin market in which its consumers can benefit from pairings with other cryptocurrencies.

The crypto-only exchange now supports five stablecoins in total: Paxos Standard Token, TrueUSD, USD Coin, StableUSD and Tether.

In November, the exchange introduced its combined Stablecoin Market, creating a place where a broader range of assets can be used as base pairs.

Binance asserts that "It is now often more efficient to buy cryptocurrency via stablecoins than through a fiat exchange" - not least because of how stablecoins are less susceptible to high transaction fees and market volatility.

The benefitsIn explaining the rationale behind using stablecoins, Binance says that it can help eliminate the confusion that all too often swirls around conversion rates.

In a blog post on stablecoins, Binance explained that "There are minimal to no fees when converting US dollars to stablecoins and back." The exchange explains that this is primarily because these transactions eliminate the cost associated with making wire transfers during the fiat-to-crypto conversion phase.

To help crypto enthusiasts make savings, Binance recommends that consumers convert their fiat into stablecoins by using the official websites of the five it supports - all of which have "Straightforward, trusted channels" for helping the transactions run smoothly.

From there, transfers to its crypto exchange can be "Fast and traceable." For those who then wish to buy the likes of Bitcoin or Ethereum using a stablecoin, Binance says the maximum trading fees associated with such a conversion are just 0.1 percent.

Chasing mainstream adoptionBinance's move into stablecoins is in reaction to growing interest from the crypto community.