- Binance on the path of Amazon and Alphabet with the latest division launch
- Binance Cloud supports its customers and global partners with a complete turn-key exchange platform solution
The world’s leading cryptocurrency exchange Binance Holdings Ltd. announced the launch of Binance Cloud on Monday. This is the platform’s first foray into business services where it will lend its technology, liquidity, and security to those who want to start their own crypto exchanges.
The Malta-based crypto giant said the new section will mirror the core functionalities of the Binance global exchange and is to help its partners and clients set up crypto exchanges using its tech infrastructure ranging from matching engines to risk controls and data security systems.
These digital asset trading platforms in local markets would involve features like spot market, futures trading, local bank API integrations, and peer-to-peer(P2P) crypto exchange services.
“As a part of Binance’s Open Platform initiative to enable more crypto access globally, Binance Cloud supports its customers and global partners with a complete turn-key exchange platform solution, consolidating the new financial infrastructure to an open platform based on blockchain technology,” said CZ (Changpeng Zhao), CEO of Binance.
A Big Wide World of Opportunity
The aim is to limit technical challenges for platforms and partners, allowing them to focus on accelerating the global adoption of crypto, said CZ.
The new service in all-in-one solution with more features to be added in the near future, including OTC (over-the-counter) trading services, staking, and token launch capabilities like IEO.
The clients will also be able to access the order book of all the existing trading pairs on Binance. “Liquidity is a chicken-and-egg problem for small exchanges,” he said. “Without liquidity, they won’t have users.”
The first digital asset exchange fully powered by Binance Cloud is scheduled to launch as early as next month, at the beginning of March 2020.
The cloud clients of Binance, CZ shared would be fiat exchanges in those regions where the company doesn’t have a strong foothold Also, they would have “good compliance status, relationships, and even strong influence with regulators,”
Binance has also set up regulatory-compliant fiat exchanges in Singapore and Jersey to appeal to a much larger user base, they also updated their Bitcoin chart.
With Binance Cloud, the platfrom is planning to join the likes of Amazon and Alphabet which evolved beyond their core customer-facing services to become the world’s biggest cloud providers.
Interestingly, centralized cloud services are hosting over 60% of the second largest cryptocurrency Ethereum’s nodes, with nearly 25% of all those operated on Amazon Web Services.
A CryptoTech Company
Binance Cloud has got a big opportunity and with this new addition, the company plans to become its biggest source of revenue in five years.
“Theoretically speaking, we can let anyone in the world create their own exchanges, and the demand is huge,” the 43-year-old coder-turned-entrepreneur told Bloomberg. “Even during the crypto winter of 2018 and 2019, hundreds of new exchanges popped up every day.”
The cloud division started just three months ago and now has about 20 people. This shift into enterprise-oriented business could also help the company in a steady revenue stream.
“Here comes the EaaS “Exchange as a Service,” wrote Dovey Wan, founding partner of Primitive Crypto adding, “If binance can pull off this EaaS model, the next step gonna be Interactive Broker in the crypto universe, which technically makes Binance a true CryptTech company (as compare to Fintech). Nice strategic move CZ!”