The largest global cryptocurrency exchange’s American subsidiary, Binance US, has begun to offer fee-free trading for Bitcoin and has ambitions to do the same for additional tokens in the future.
According to Brian Shroder, CEO of Binance US, “Since conception, we have been known for our incredibly cheap fees.” Trading with no fees is “something we wish to do because we can. Positive user attitude will result from this, which will increase our user base.
The action will put more on on other cryptocurrency exchanges, like Coinbase Global Inc., to reduce their costs. As competition intensifies, Wall Street experts including Dan Dolev of Mizuho Securities have predicted that Coinbase will have to lower costs.
According to Shroder, Binance US does not profit from no-fee transactions through a spread. This contrasts with Robinhood Markets Inc., which provides no-commission cryptocurrency trading and makes money by getting rebates from the venues to which it distributes orders from retail consumers.
Shroder stated, “We take no spread, as we are not involved in the transaction. According to him, the action is an investment meant to draw in more users and bring in money from other sources, like a recently introduced staking service.
According to Shroder, users of the platform can view a live order book for matching trades. Binance US anticipates eventually adding more tokens to its free trading category.
In a seed round completed in April, Binance US raised around $200 million, giving the business a $4.5 billion valuation. Data from Coingecko.com show that as of Tuesday, its 24-hour trading volume was $239 million. Coinbase, which has customers outside of the US, transacted $1.8 billion during that time.
Source : https://www.bloomberg.com/crypto
