Bittrex Inc. which allows its users to swap more than 200 crypto coins has said that it forged bank agreements so as to allow its customers to use the US dollar to trade. According to the exchange, the new pact will allow corporate clients in different states use the US dollar to buy virtual tokens. Through this move could increase the trading revenue by adding more users to their platform. Bittrex is said to be working with Signature Bank of New York in order for the bank to hold dollar dominated funds while still cooperating with other financial institutions.
According to Bittrex CEO Bill Shihara:
“This has been a long path and it’s not all about banks trusting Bittrex but banks being able to trust cryptocurrency transactions. This is also a clear indication that virtual currencies are turning the corner when it comes to 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.
Shihara went on to add that:
“They have been looking through our entire process. They are asking us to make sure that we have a good KYC/AML process so that we can control our finances in a good way. They have been doing underground checks and will continue looking to our business soup to nuts”
Bittrex is growing very first and is currently having more than 3 million customers all over the world and is planning to launch fiat trading on Thursday for Bitcoin, TrueUSD, and Tether. This new platform will be available for corporate customers in California, Washington, Montana and New York in the initial stages because of regulatory reasons. Bittrex, however, said that they have plans to expand the service to retail investors in the long-term.