Cryptocurrency exchange COBINHOOD recently announced the launch of crypto-to-fiat trading pairs, in order to increase its share in the evolving digital currency trading market. Reportedly, the exchange’s users will now have the option to trade USD for cryptocurrencies (and vice versa) supported by COBINHOOD.
Starting from July 20, 2018, COBINHOOD will reportedly accept USD deposits, while making sure it follows all regulatory requirements. The exchange’s management notes that its trading platform complies with all applicable know-your-customer (KYC) guidelines.
Notably, COBINHOOD touts its services meet KYC Level 3 grade, which ensures that its crypto trading platform complies with the most stringent financial regulations worldwide.
In order help facilitate crypto-to-fiat trading, COBINHOOD partnered with online payments company Epay to offer its users an intuitive payment interface. The cryptocurrency exchange appears to further be expanding its operations through a partnership announced last month with IDG Capital, an investment company that manages over $20 billion in clients’ assets.
According to COBINHOOD, IDG Capital will provide the financial backing for it to launch a decentralized crypto exchange (DEX). COBINHOOD founder Popo Chen stated,
Traders know there are opportunities abound for value, so it's a very synergistic time to debut fiat trading on the COBINHOOD platform. There's no doubt in my mind that many value investors were waiting on the sidelines until prices rationalized, and so the near term promises to be an exciting time for exchanges that can offer the liquidity fiat options provide.
This, despite the current cryptocurrency market following a bearish trend, according to Chen. He added that if a digital currency exchange can offer fiat trading pairs, then it can potentially attract more traders due to the “attractive liquidity fiat options provide.”
Experts have also pointed to various signs of a potential bull market for cryptocurrencies. For instance, custodian services are now being offered for digital currencies. Moreover, crypto-related exchange-traded funds (ETFs) may soon be approved by regulators.
This, as the US Securities and Exchange Commission’s (SEC) charmain Jay Clayton recently revealed that decentralized cryptocurrencies like Bitcoin and Ethereum aren’t securities.