Paxful announced that it has added Tether (USDT) to its platform alongside Bitcoin (BTC).
Recently, the peer-to-peer marketplace that allows exchanging BTC with fiat currency has seen a significant increase in trading volume, as it had never exceeded $30 million in weekly volume until February 2020, while in June it set a new record above $44 million.
In addition, the company revealed that the platform has now reached 4.5 million wallets, with a total trading volume of $4.6 billion, and has managed to reduce disputes to less than 1%. On average, users have increased by 1 million each year, but by 2020 they are on track to close with 2 million new users by the end of the year.
With the addition of USDT its use could grow further, as bitcoin can now be exchanged not only for fiat currency, but also for this stablecoin.
Paxful bets on Tether
The crypto sector has been experiencing a real surge in demand for stable digital currencies for some time now, so much so that Tether itself has become the third-largest cryptocurrency in the world by market capitalization, behind only Bitcoin and Ethereum.
Its market capitalization in recent months has increased from about 3.5 billion dollars to 14 billion dollars, also because Tether is increasingly used for trading bitcoin with the BTC/USDT pair.
The addition of Tether on Paxful is provided as a hedging option, i.e. to allow users to instantly convert BTC to USDT, but also vice versa, to protect their funds during downward fluctuations of bitcoin’s price.
Users can also buy and sell USDT directly using fiat currency with over 300 payment methods. The USDT balance is accessible via the user’s wallet page, where the current market price for both currencies is displayed.
The company also plans in the future to enable trading on its platform, precisely with the BTC/USDT pair, and probably also to add more cryptocurrencies in addition to the two present now.
CEO and co-founder of Paxful, Ray Youssef, said:
“We consider this a big step for us since this is the first cryptocurrency other than bitcoin we have on the platform. We always listen to our users. We understand that they go to Paxful for wealth generation and turn to crypto for stability when their national currency is affected by inflation. We hope that this can aid them to be more in control of their finances”.