SINGAPORE, April 1, 2021 /PRNewswire/ -- EQUOS,
Diginex's [Nasdaq:EQOS] institutional-grade cryptocurrency
exchange, has expanded its stablecoin offering by listing Tether
(USDT), providing an onramp into the EQUOS ecosystem for traders
who use USDT as a base currency.
Tether is well-established as the largest and most widely used
stablecoin, and is currently ranked fourth largest cryptocurrency,
by market capitalization. However, it has also been subject to
negative media coverage and concerns from critics.
In considering USDT, the EQUOS listing committee undertook a
thorough process, which it applies to all potential listings,
including analysis on utility, degree of decentralization, current
usage, and transaction flow, ongoing development effort, innovation
over other blockchains, and long-term prospects.
The EQUOS listing committee was formed in order to differentiate
the platform's listing process from other exchanges, using clear
independent criteria that is not swayed by offers of sponsorship by
projects, as is seen on some other exchanges. In the specific case
of Tether, concerns were significantly reduced following the
settlement reached by the New York
Attorney General in February, regarding its recent inquiry into
Tether's financial transparency[1].
EQUOS' parent Diginex is listed on Nasdaq, and as one of the few
exchanges that does not make markets on its own exchange, sees
itself as a regulator of its own marketplace, aiming to protect its
customers from bad actors that have been prevalent in the
cryptocurrency space in the past.
Kelvin Ting, Head of Blockchain
Strategy at Diginex commented: "Tether was always going to be an
interesting debate at listing committee. Due to Tether's position
as the first stablecoin in the market, it is traded by both retail
and institutional clients as a base currency and allows us to
expand our client base to these traders. We decided to proceed on
the balance of all considerations including the recent progress it
has made towards financial transparency."
This announcement comes just days after Tether released a
report[2], in which
independent auditor Moore Cayman attested that the stablecoin is
fully backed by US dollar reserves, a move that is likely to
reinforce its popularity. It had previously been reported by
several publications that Tether was only partially
backed[3] by US
dollar holdings.
EQUOS offers a stablecoin pair crossing USDT and USD Coin
(USDC), improving capital efficiency on the exchange. This allows
holders of Tether to take advantage of the many benefits that USDC
fungibility on EQUOS offers. Currently, EQUOS uses USDC as its base
currency for trading with other cryptocurrencies, such as Bitcoin
and Ethereum. In addition, EQUOS also offers the ability for
customers to deposit fiat USD, and then swap into USDC on a
one-to-one basis, without any exchange rate fees or risk.
Fungibility is central to minimizing extra costs for investors
trading through EQUOS, as it empowers traders to efficiently
allocate into their chosen assets while incurring the least amount
of fees associated with bridging through a stablecoin base
currency. By offering USD — USDC fungibility, clients can use both
currencies interchangeably at no additional cost. To this end, the
listing of USDT on the exchange acts as an onramp mechanism for
traders who have historically traded in USDT to EQUOS' fungible
ecosystem.
Richard Byworth, CEO of Diginex,
said: "Our strategy is to provide our clients with greater choice
and increased capital efficiency. The addition of Tether to the
suite of dollar products was a logical progression in that goal. A
lot of the criticism of Tether was poorly researched and designed
to bring a negative slur to the industry. We are proud to support
Tether, an early innovator in the development of the cryptocurrency
industry."
About Diginex
Diginex is a digital assets financial services company focused
on delivering a cryptocurrency and digital assets ecosystem
offering innovative product and services that are compliant, fair
and trusted. The group encompasses cryptocurrency exchange EQUOS.io
as well as an over-the-counter trading platform. It also offers a
front-to-back integrated trading platform, Diginex Access, a
securitization advisory service, Diginex Capital, market leading
hot and cold custodian Digivault and funds business Bletchley
Park.
For more information visit: https://www.diginex.com/
Follow Diginex on social media on Twitter @DiginexGlobal, on
Facebook @DiginexGlobal, and on LinkedIn.
Follow EQUOS.io on social media on Twitter @EQUOS_io and on
LinkedIn.
Forward-Looking Statements
This press release includes forward looking statements that
involve risks and uncertainties. Forward looking statements are
statements that are not historical facts. For example, forward
looking statements in this press release relate the completion of
the private placement, the satisfaction of customary closing
conditions related to the private placement and the intended use of
net proceeds from the private placement. Such forward-looking
statements are subject to risks and uncertainties, which could
cause actual results or outcomes to differ materially from the
forward-looking statements. Most of these factors are outside of
Diginex's control and are difficult to predict. Factors that may
cause such differences include, but are not limited to: the ability
to recognize the anticipated benefits of the business combination;
the ability of Diginex to grow and manage growth profitably;
Diginex's limited operating history and history of net losses;
Diginex's ability to execute its business plan; the inability to
maintain the listing of Diginex's shares on Nasdaq; Diginex's
estimates of the size of the markets for its products; the rate and
degree of market acceptance of Diginex's products; Diginex's
ability to identify and integrate acquisitions; potential
litigation involving Diginex or the validity or enforceability of
Diginex's intellectual property; general economic and market
conditions impacting demand for Diginex's products and services;
and such other risks and uncertainties indicated in Diginex's Shell
Company Report on Form 20-F, including those under "Risk Factors"
therein, and in Diginex's other filings with the SEC, which are
available on the SEC's website at www.sec.gov.
In addition, any forward-looking statements contained in this
press release are based on assumptions that Diginex believes to be
reasonable as of this date. Diginex undertakes no obligation to
update any forward-looking statements to reflect events or
circumstances after the date of this press release or to reflect
new information or the occurrence of unanticipated events, except
as required by law. Other than those of Diginex, all names,
trademarks and logos in this Press Release and used in the
materials herein belong to their respective owners. Nothing
contained on this Press Release should be construed as granting, by
implication, estoppel, or otherwise, any right or license to use
any third-party names, trademarks, or logos displayed on the Press
Release without the written permission of such third-parties.
Copyright (c) Diginex 2021.
[1] NYAG's Probe of
Bitfinex, Tether Ends in an $18.5M Settlement - CoinDesk
|
[2] Source: Tether:
Assurance Opinion Confirms Tether's Reserves Fully Backed;
Company Shares as Part of Ongoing Transparency Commitment
(link)
|
[3] Source: Bloomberg
Tether Says Stablecoin Is Only Backed 74% by Cash, Securities
(link)
|
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SOURCE Diginex Limited