Blockchain, the company known for its wallet service and blockchain explorer, has announced the launch of its own cryptocurrency exchange platform.
The platform, which they’re calling The PIT, has been under development in stealth mode over the past year. The PIT aims to complement Blockchain’s wallet business, which allows more than 40 million users around the world to store, send, and receive a number of digital assets.
From Blockchain Wallet To Cryptocurrency Exchange
In a blog post published by the company, Blockchain highlights the shortcomings of existing blockchain platforms, including unreliability, illiquidity, and unfair mechanisms:
“They encourage users to keep their crypto deposited, rather than safely secured in their own private keys. 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.
The company wants to leverage its extensive user base and existing wallet service to keep the asset flows within its platform. Instead of sending their assets to other exchanges, Blockchain wallet users can now seamlessly trade on PIT.
Tough Competition From Other Exchanges
The competition, however, is relatively tough on this front. Earlier this year, eToro also launched its own regulated cryptocurrency exchange, focusing on markets other than the U.S. Recently, exchanges targeting institutional investors such as ErisX also launched spot market trading. On top of this, decentralized exchanges have tripled in transaction growth this year.
As for the PIT, the exchange will be available to users in over 200 countries with an initial 26 trading pairs. In some countries, the platform will allow depositing and withdrawal in fiat currencies like the U.S. dollar and the Euro. Blockchain plans to quickly expand in the near future and add more trading pairs.
Right from the start, PIT will offer lower fees than some other exchanges, including Coinbase and Kraken. Moreover, 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.
What do you think of the new launch? Can Blockchain provide a better experience to traders than existing platforms? Let us know in the comments!
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