FXGate Expands into Tether
FXGate now accepts deposits in USD-pegged cryptocurrency Tether. Precious metals, energies, and indices are now available for trade against the currency for sending, receiving, and storing.
The forex and CFD broker now stands as one of the only Forex brokers that accept deposits in crypto. Chairman Ahmed Alfaraj said they pegged on USDT because it’s one of the most stable cryptocurrencies, like the US Dollar.
Solid banking relationships, stringent compliance practices, and a comprehensive legal structure helped them offer the best trading environment, added Alfaraj.
The US Dollar eliminates pricing or liquidity constraints because of its underlying fiat. Stablecoins like Tether pegged to these types of currencies make their value stable for usability.
Tether initially brought concerns of integrity when accusations like USD getting printed without the reserves to back them. Despite this, the currency’s market cap doubled from 2018 to 2019.
Dominating the Chinese market, Tether replaced the yuan as the go-to fiat currency, said a Chainalysis report. This was because China banned citizens from trading CNY for digital coins.
Roughly 40 percent of cryptocurrency exchanges, operated in the Asia-Pacific region. They also dominate trading in options and futures.
FXGate, founded in 2018, is regulated by the Labuan Financial Services Authority (LFSA) in Malaysia.
Their current focus falls on fully operating two offices in Malaysia, Labuan, and Kuala Lumpur. The firm plans to fully operate and establish dominance in the Asian market before moving onto other regions.
Then, they plan to open and operate representative offices in Dubai, Saudi Arabia, and Egypt.
They will start focusing on Europe from 2021 onwards, starting from the Eastern European countries with regulatory licensing.
FXGate’s end goal is to see the company become one of the most sought-after companies in FX. Its expansion through the Asian and European regions can help them become one of the biggest names in the industry.
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