Blockchain.com, which has created more than 40 million digital-asset wallets, is moving into the trading game with a new exchange.
Blockchain Building a Trading Venue Alternative
The platform – named The PIT – was being developed over the past year in away from public eyes. The PIT aims to compliment its wallet business, which allows more than 40 million users around the world to store, send, and receive a number of digital assets.
In a blog post published by the company, Blockchain highlights the shortcomings of existing blockchain platforms, including unreliability, illiquidity, and unfair mechanisms.
“On top of all this they are overly complex: getting the full feature set often requires accounts at multiple venues – one with plenty of asset selection, one with decent fiat support, and perhaps one with leverage.”
The PIT is set to be an exchange that excels at order execution, providing increased speed, liquidity and reliability, according to the announcement.
Blockchain’s head of retail products, Nicole Sherrod, stated that the PIT can connect to non-custodial Blockchain wallets for nearly instant transfers. Sherrod said that with nearly 40 million wallets already created – and an exchange matching-engine set up in London’s Equinix LD4 data center – PIT could be posed to attract more liquidity than competitors.
The company wants to leverage its extensive user base, existing wallet service and keep the asset flows within their platform. Instead of sending their assets to other exchanges, Blockchain wallet users can now seamlessly trade on PIT.
“They encourage users to keep their crypto deposited, rather than safely secured in their own private keys,” according to the post.
PIT Wants to Beat the Competition
The competition, however, is relatively tough on this front. Earlier this year, eToro also launched its own regulated crypto exchange, focusing on markets other than the U.S. Recently, institutional aimed exchanges such as ErisX launched spot cryptocurrency markets.
As for the PIT, the exchange is available to users in over 200 countries, with 26 trading pairs initially, including Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). In some countries, users are able to deposit and withdraw in fiat currencies – the U.S. dollar and the Euro. Blockchain plans to quickly expand in the near future and add more trading pairs.
“Beyond the 26 [assets] we already know what our phase two asset listings are going to be, as well as phase three,” Sherrod said.
Right from the start, PIT will offer lower fees than some other exchanges, including Coinbase and Gemini. Further, trading fees have been waived for the first 30 days. After that, traders will pay 0.24% and 0.14% in taker and maker fees, respectively, at volumes lower than $100,000 per month.