According to a press release published on June 26, the gateway will enable traders to exchange fiat currency for the PAX Standard (PAX) stablecoin on the Paxos platform via wire transfer. The amount will then be reflected directly as a PAX-denominated balance in their Binance accounts.
The press release claims that the new fiat on-ramp will foster increased PAX liquidity on the exchange and thus optimize price discovery for traders.
All PAX redemptions on Binance will reportedly be zero-fee, and not be subject to minimum or maximum thresholds for withdrawals and deposits.
In a statement, Binance CEO Changpeng Zhao — commonly known as “CZ” — underscored the importance of easing fiat-crypto exchange and providing support for liquid and fully-backed stablecoins such as PAX in order to grow the platform’s trading ecosystem.
As reported, Paxos has recently enabled users to instantly redeem unlimited amounts of its tokens for United States dollars. In parallel, the firm shifted to showing user accounts for PAX and USD as a single balance on its platform to follow through with its vision of the token as a bonafide digital dollar.
Earlier this month, Binance’s Chief Financial Officer confirmed rumors that the exchange would start issuing proprietary stablecoins within two months, starting with a British pound-pegged coin, Binance GBP.
The move to issue native stablecoins will purportedly reduce the market share of stalwart — albeit controversial — stablecoin tether (USDT) on the platform, which currently represents over 50% of its stablecoin volume.
Also this month, Binance listed its first two stablecoin trading pairs on its non-custodial trading platform Binance DEX.