The well-known crypto exchange Bittrex announced that it will allow the purchase of cryptos directly with FIAT, after having successfully negotiated an agreement with Signature Bank to process such payments.
Signature Bank is based in New York and will be the institution in charge of safeguarding the dollar funds deposited by Bittrex.
This agreement is especially important because it is made with a bank located in a place as complex as New York – which could soon abolish BitLicense.
In addition to driving a broader customer base for Bittrex, the fact that banks have this commercial interest is good news for cryptos in general.
The news was announced by the Bittrex communications team on their official blog, explaining in more detail the particularities of this process and its importance for future global adoption.
Bittrex Goes for Baby Steps
For now, only BTC, USDT and TUSD can be purchased in FIAT Dollars. That is to say, although the more than 200 altcoins are not bought directly with FIAT, the possibility of acquiring BTC as a standard pair and two stablecoins makes the process practically similar to direct purchase.
Another of the temporary barriers is the fact that the services will only be offered to corporate clients. This measure -explains the Bittrex team- is carried out for security reasons during service tests:
“We’re using a phased approach to establish the fiat market on Bittrex. It allows us to provide quality control and ensure customers experience the highest level of service possible. We’re rolling out the first phase today, which will enable fiat trading for approved corporate customers in qualified states and international regions. But don’t worry – this is only the beginning as we’ll continue to roll out additional phases to expand this offering to all qualified (non-corporate) customers over time.”
But the obstacles don’t stop there. To further control any damage in the event of a failure, service will be available primarily for certain territories within the United States only:
“During this first phase, fiat trading will be limited to approved corporate customers in the United States located in Washington State, California, New York and Montana. Qualified international customers may participate in the market as well.”
Good Things To Come for Bittrex Users (and Crypto Enthusiats in General)
It is important to note that the Bittrex team was emphatic in pointing out that their plan is “to continue to add to fiat trading to the top digital currencies on our platform.” However, they did not give dates, not even tentative dates.
The Bittrex team is quite optimistic about the future outlook for a more crypto-friendly system. In an interview with Bloomberg, Bill Shihara, CEO of Bittrex said
“It’s been a long path… It’s not just about banks being able to trust Bittrex, it’s about banks being able to trust crypto in general. And I think it’s really showing that crypto is turning the corner in terms of mainstream acceptance.”