BitcoinVN’s OTC Desk which is specialized in settling large volume transactions of Bitcoin, Tether and Ethereum versus Vietnam’s national currency VND has started after an initial trial period to officially settle client trades of USDT (Tether) in the TRC20 standard if the clients chose to do so.
BitcoinVN’s Head of OTC Trading Bao Phuong Nguyen:
“Especially for more retail oriented clients on our desk the high transaction fees on Ethereum start to have an increasingly negative impact on the margins & pricing.
Due to the higher degree of centralization of the TRON network it is able to settle Tether transactions utilizing it’s TRC20 token standard in a much faster and more reliable manner than the Ethereum network.”
While BitcoinVN has in the past year integrated the Simpleledger Token Standard as another cheap and reliable alternative to the high-priced USDT (Tether) transactions on the Ethereum network, the Asian markets have shown to have a strong preference towards the TRC20 standard on the TRON network due to integration work done with a variety of marketing-moving exchange platforms of Chinese origin.
“It should be clarified that our decision to provide support for the TRC20 standard is simply based on market demand by our client base across Asia – rather than an endorsement or even investment recommendation of the TRON token itself.
That said, their team has done the homework to integrate with a variety of key players across Asia which provides them with a superior network effect in this region when it comes to choosing alternatives over the existing ERC20 Token standard.” said Nguyen.
For the time being the integration remains restricted to the OTC trade desk across BitcoinVN’s product line – however, CTO Alex Winter of BitcoinVN mentioned that: “We will observe the market demands further and react accordingly if the numbers coming from our OTC desk justify it.”
BitcoinVN has in the past year also increased its efforts to experiment and prepare integration with the Lightning Network – and is expecting to rollout further support for it by 2021; including an active observation of the efforts to bring USDT onto the Lightning Network via the RGB protocol or Omnibolt.
Tether was launched as one the world’s very first Stablecoin attempts back in 2014 – and has especially since the last “bubble” in 2017 gained a massive market momentum and plays a key role to hold up the “Dollar Standard” in the Global Cryptocurrency Markets.