The peer-to-peer trading platform Paxful has been supporting Tether (USDT) since the beginning of this month. It appears that the interest in this dollar-linked stablecoin is enormous.
Users can now exchange their Bitcoin (BTC) between themselves for Tether, without the need for bank accounts, gift vouchers or similar means of exchange.
On 9 September, the platform launched the dollar-denominated stablecoin. Since then, users have converted almost $1.5 million in Bitcoin to Tether. This is evidenced by data that Paxful has shared with Decrypt.
The platform is based in the United States and was launched in 2015. Since then, it has grown very organically and gradually into a reputable name.
It has competed with Local Bitcoin Cycle and is particularly popular in developing countries.
Users can buy or sell Bitcoin from/to other people whereby Paxful brings these two parties together. It is not a stock exchange or broker (with an order book or its own balance sheet), but it is a peer-to-peer marketplace.
In the first six months of 2020, the platform facilitated more than $1 billion worth of trading. Since its launch in 2015, this figure has exceeded $4.5 billion.
Whereas in the past it mainly dealt with bank transfers or gift vouchers, the Tether stablecoin offers an extra dimension of possibilities.
It is a bridge between the two worlds, bringing fiat and Bitcoin closer together. In some countries this is a very important step.
Paxful has become popular in parts of the world, such as India and Africa, where trading crypt currency on stock exchanges is difficult due to regulations.
Nor does the lack of technical infrastructure help here. More than 40% of users came from Africa in October 2019.
By the way, one can choose to exchange Bitcoin for all kinds of assets. Whether it’s vouchers, cars or in-game items. The platform offers a whole range of possibilities in this respect.
Recently, however, they had to close the doors for Venezuelan customers. Increasing regulations made it difficult to serve South American customers. Also, financial sanctions from the United States would not have made it easy.
Paxful is the world’s number two peer-to-peer exchange, after LocalBitcoins from Finland. There are also ’smaller‘ marketplaces such as Bisq and HodlHodl.
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