Binance Research: non-financial institutions may be key to growing crypto

23 May, 2019 | Updated: 23 May, 2019
by Richard Allen
Binance Research: non-financial institutions may be key to growing crypto

A recent report conducted by Binance Research has foreseen the rise of USD-backed stablecoins while predicting the decline of Bitcoin and Ethereum-based trading pairs.

Binance Research selected Bitcoin to act as the base currency for comparing the liquidity of stablecoins. Aside from the BTC/USDT pair, Paxos (PAX) and USD Coin (USDC) exhibited the lowest median and average spreads over April. StableUSD (USDS) lagged the most as a result of its extremely small supply cap in comparison to the other stablecoins and dependence on a single exchange.


The report also delved into tether’s volatility, describing it as being one of the most volatile stablecoins, likely a result of the controversy relating to it being 74% backed by fiat. The report states recent developments about Tether may lead to even greater volatility in the coming months.

The recent partnership between Tron and Tether also featured in the report, and how a new blockchain could form as a result. Additionally, Binance Research also touched on the upcoming partnership between Ontology and Pax to issue a collateralized stablecoin based on Ontology’s OPE-4 token standard.

Finally, the report also includes the increasing participation of non-financial institutions like Facebook and Samsung. Both companies have a user base that could potentially disrupt the entire sphere. Stablecoin initiatives from these companies “might further the growth of the digital asset industry by introducing cryptocurrencies and blockchain technology to their large existing user bases,” the report reads.

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