The world’s largest cryptocurrency trading platform Binance has made its first move to enter into the business services by offering its technology and liquidity to those who want to start their own exchange.
Binance announced that its cloud operation would help business clients and partners to set up a crypto exchange using Binance’s technological infrastructure, ranging from matching engines to risk controls and security systems for data.
Huge technological companies like Amazon.com Inc. and Alphabet Inc. have made a headway to be the world’s biggest cloud suppliers, and currently, Binance aims to achieve the same sort of success in the crypto business.
On talking about the evolution coming in the next five years CEO, Changpeng Zhao believes that the Binance Cloud will overtake the company’s main exchange that will turn out to become its biggest source revenue in the coming few years.
Binance’s strategy of attracting fiat money gets appreciated by a cloud division that started just three months ago and now has nearly 20 people. Binance makes money mostly through the transaction fees on its trading platforms, which keeps on fluctuating with the change in crypto prices. To start a steady profit return from the ongoing startup, the shift into an enterprise-oriented business can be of great help.
Talking about it specifically, “CZ” says that Binance will announce the first fiat exchange powered by its cloud service in the coming weeks, while it has confirmed four other clients in the lineup. Clients will also be able to access the order books of all the existing trading pairs on Binance.
He further stated,
“Liquidity is a chicken and egg problem for small exchanges; without liquidity, they won’t have users.”
Binance was founded in 2017 as a crypto-to-crypto trading platform, which achieved recognition soon because it handled only tokens like Bitcoin and Ether, which in turn avoided them dealing with banks and government monitoring system.
Binance has set a regulatory-cooperative fiat exchange under authorities like Singapore and Jersey, which appeals for a much larger user base that hasn’t taken digital money into consideration.