Binance Incorporates Paxos Standard (PAX) in Bitcoin Pairing
The addition of several new stablecoins pegged to the dollar aims to diversify the trading on Binance, where Tether (USDT) tokens still dominate.
Binance will adopt the Paxos Standard (PAX) digital token in a drive to diversify its portfolio of stablecoins. The announcement that PAX would be included in pairings with Bitcoin (BTC) arrives soon after Binance announced its policy of listing prices against a basket of stablecoins.
The exact structure of the new stablecoin market to replace the USDT market is unknown. However, the changes are starting with PAX. Binance has pointed out the specific structure of the pairs: PAX will not be the base asset. Instead, the base asset will be BTC and some altcoins.
PAX will trade in the following pairs: BNB/PAX, BTC/PAX, ETH/PAX, XRP/PAX, EOS/PAX and XLM/PAX. Trading will open on November 29. The exchange will delist the previous pairs, namely PAX/BNB, PAX/BTC, PAX/ETH. PAX will be a part of the general stablecoin market, along with other assets listed on the exchange.
The importance of stablecoins was seen during the latest bear market. As prices fell, BTC trading started to depend heavily on USDT pairs. On Wednesday, more than 59% of all BTC trades were against USDT, coinciding with a breakout of BTC prices above $4,000.
The supply of stablecoins that aim to ensure an alternative to USDT is increasing. TrueUSD (TUSD) has now distributed more than 191 million tokens.
PAX has a supply of more than 136 million tokens, while USDC has more than 168 million tokens. Tether still has a circulating supply of nearly 2 billion tokens, and sees the most activity. However, the alternative stablecoins are there to absorb the selling, when traders decide to move out of USDT.
With Binance, some traders may be able to sell directly to PAX tokens as a hedge against volatility. Additionally, PAX is a token issued with full regulatory approval from the New York State Department of Financial Services. Binance has been instrumental in the adoption of stablecoins. USDC, the recently added asset by Circle, sees more than 14% of its volume on Binance.
The exchange has seen a spike in trading, up to $946 million in 24 hours. Previously, Binance trading had shrunk to around $600 million, while normal peak volumes regularly reach more than $1 billion.