Over the past couple of years, a few key cryptocurrency exchanges have risen to the top of the industry, dominating the vast majority of trading volume while providing users with an easy and secure way to purchase, store, and trade crypto.
Now, one of the world’s largest cryptocurrency wallet providers is foraying into the exchange game, and their current popularity, in combination with cutting edge technology, may allow them to pose a serious threat to Coinbase.
Crypto Wallet Provider Enters the Exchange Game
Blockchain, one of the most popular cryptocurrency providers in the industry, announced recently that they have launched a crypto exchange – dubbed The PIT – with the goal of allowing traders to execute what they describe as “lightning fast” trade executions.
These speedy orders will be powered by a matching engine called “Mercury,” which can execute both buy and sell orders in “40 to 50 microseconds,” according to the platform’s CEO, Peter Smith.
Importantly, this type of trade execution is cutting edge presently, and is certainly a feature that some spot traders will appreciate when rapid buy or sell orders are needed to enter or exit profitable positions.
Nicole Sherrod, the head of trading products at Blockchain, spoke to CNBC in a recent interview about the importance of rapidly executed trades, noting that speed is of the “utmost importance” in volatile market conditions.
“In volatile markets in particular, speed is of utmost importance… I would not feel comfortable delivering a platform to retail investors that puts them in a position where they couldn’t get in and out of a trade with lightning-fast speed,” she explained.
Will Rapidly Executing Orders Be Enough to Convert Users?
Although having the ability to execute orders at a lightning fast speed is certainly one advantage that traders will appreciate, many traditional investors who simply buy digital assets as long-term investments may not care too much about this feature, and may forego investing via The PIT in favor of potentially more well-known platforms, such as Coinbase.
Despite this, the platform could draw in new users due to its long-established reputation within the crypto industry, and because of its three fiat trading pairs that are offered, which will allow users to fund their account and trade crypto using US Dollars, Euros, and Sterling.
Initially, the platform will be available in over 200 countries, will offer 26 trading pairs in total, and will allow for users to link their bank account to the platform.