A New Norm For Centralised Exchanges
Two major exchanges, Hong Kong-based Binance and Japan/Singapore based Quoine, have joined forces in order increase their services available for their users. Quoine, the very first company to receive a license from the Japan Financial Service Agency, supports multiple local currencies, such as Japanese yen, US dollar, Euro, HK dollar, Indonesian rupiah, Singapore dollar, Philippine peso, Indian rupee and Australian dollar. Binance will have access to these local currencies and will, in turn, provide liquidity and access to multiple alternative currencies. The strategic partnership is a perfect fit, for both companies can focus on their own niche.
On the partnership, Binance CEO Changpeng Zhao stated,
“We have been in constant communication with QUOINE and believe they have a professional team with abundant experience in Banking and Finance. It did not take us long to decide on having a strategic partnership with them, and we believe together we can provide global traders with a more comprehensive range of services. We hope that in the future, Binance will be able to enter into further collaborations with other exchanges for similar fiat-crypto co-operations”.
Mike Kayamori, CEO, and Co-founder of QUOINE also stated,
“Binance and QUOINE are market leaders for global cryptocurrency trading platforms and our volumes make both Binance and QUOINE among the largest cryptocurrency exchanges globally. We are proud to share an aligned strategic vision with Binance to build globalized, liquid markets for the crypto economy. We are excited to welcome Binance to our Global Liquidity Alliance to strengthen the QUOINE LIQUID platform.”
What we are seeing is a growing trend with centralized exchange companies. Rather than isolating themselves from outside markets, companies are now hastily building partnerships with each other in order to provide liquidity and to share each other’s services. This seems to make perfect sense, for the more liquidity an exchange has, the more users feel safe trading there. If liquidity can be shared, both exchanges will grow together. Furthermore, as these markets are not restricted by borders, liquidity can be provided with ease while each exchange can market to their own specific location.
The Binance partnership, however, is a big deal because of the rapid user growth on the Binance exchanges. Within 3 months, Binance is already a top 10 exchange in terms of net volume. In fact, Binance has the ability to match just under 1.5 million transactions per second, making it one of the fastest in the world. While Binance is based in Hong Kong, it has servers all around the world including South Korea to even the remote British Virgin Islands. Despite the ban on exchanges in China, Binance has remained a crowd favorite around the world because of its clear competency in the industry. With a stroke of genius, the Binance team created a community token of the month where a list of coins is voted to be uplisted every month. As coin communities scramble to recruit potential voters, Binance gets free advertising; a win-win for both communities.
While Quoine is ranked just inside the top 40 in volume, it has the potential to easily move up in the ranks because of its recent partnerships and its recent successful ICO. Following in the footsteps of other successful exchanges like Binance, Quoine hosted an ICO for its new QUSH coin. The QUSH coin only lasted 3 days with a total of 105 million USD raised. Like other exchanges that have followed this model, users now have a vested interest in bringing in volume to the exchange. Quoine is also unique in the sense it hosts multiple fiat currency pairs; a lucrative feature that makes Quoine a company worth partnering with.
The partnerships between Quoine and Binance is significant because of the moves the two exchanges have made in recent months. Both exchanges have the ability to be world leaders in the centralized exchange’s markets because of their successful ICOs, willingness to build relationships with our exchanges, strategic locations of their offices and servers and their willingness to work with governments in legalizing their operations. are a limited number of Bitcoins, as a fork doubles their supply.