Bittrex Inc., a Seattle-based cryptocurrency exchange that lets users swap nearly 200 different digital coins, said it forged banking agreements that will allow some customers to trade in U.S. dollars.
Bittrex Inc. has established a formal agreement with Signature Bank in New York to allow corporate clients in specific states to purchase virtual tokens using USD. The move is designed to increase the amount of institutional capital making its way through the crypto space. Through this move could increase the trading revenue by adding more users to their platform.
Chief executive officer of Bittrex Bill Shihara says the exchange has been working on this partnership for months.
“It’s been a long path. It’s not just about banks being able to trust Bittrex; it’s about banks being able to trust crypto in general, and I think it’s really showing that crypto is turning the corner in terms of mainstream acceptance.”
Most reputable banks and large financial institutions which have strict binding government regulations about money laundering and also customer verification have been avoiding putting their reputation in question since the crypto sector has in many times been associated with criminal activities like money laundering. This has led to some virtual-currency markets working on a crypto-to-crypto method only which means that they have been allowing customers to trade using crypto money but not in dollars.
Banks are beginning to join the crypto sector. A good example is a relationship which has been made between Coinbase and three banks namely Cross River Bank, Silvergate Bank and Metropolitan Bank in the United States. Coinbase also recently opened an account with Barclays PLC bank of the United Kingdom. Noble Bank International started cooperating with Bittrex in 2017 after their association with Wells Fargo.
Discussing the needs of traditional banks, Shihara went on to say,
“They really do look and pour through the entire business. They want to make sure we’ve got robust AML/KYC processes and that we’ve got the right controls on our finances. They do background checks and everything. They really look at our business soup to nuts.”
Bittrex, which boasts roughly 3 million customers around the world, allows users to trade up to 200 different digital coins. Fiat trading capabilities will also be launched May 31, 2018, for bitcoin, Tether and TrueUSD.
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