FXGate, an FX and CFD broker, announced on Wednesday that it is accepting deposits in USD-pegged stablecoin Tether.
This will enable the clients of the global brokerage to trade FX, precious metals, energies, and indices against the digital currency. The platform will also allow traders to send, receive, and store the digital currency across exchanges, trading platforms, and wallets.
Commenting on the development, Ahmed Alfaraj, chairman of the brokerage, said: “FXGate is one of the only Forex brokers in the world currently accepting deposits in a cryptocurrency format. We opted for USDT because it is one of the most stable cryptocurrencies and has similar properties as the US Dollar.”
“Our solid banking relationships, stringent compliance practices, and a comprehensive legal structure allows us to consistently be at the forefront of market developments and ensure we offer our clients the best trading environment possible.”
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A ‘stable’ digital currency
Cryptocurrencies like Bitcoin and Ether are known for their price volatility. However, stablecoins are pegged to fiat currencies or other physical assets, which makes their value stable, allowing their usage in real-world scenarios.
The brokerage stressed Tether’s backing by the US dollar, which eliminates any pricing or liquidity constraints because of its underlying fiat, traders can easily buy or sell the cryptocurrency.
Founded in 2018, FXGate is registered in Malaysia and is regulated by the Labuan Financial Services Authority (LFSA). Based on the MT4 platform, the brokerage offers a number of forex trading pairs and also facilitates the trading of precious metals, energies, and indices.
In an interview with Finance Magnates last year, Abdallah Garib, CEO of the brokerage, revealed his plans to dominate the Asian markets and then expand in Europe.
“The long term the vision would be to be well-positioned to be as competitive as we can with the main players in the derivatives industry. Globally, not just in the Asia or MENA region, but also globally,” Garib said.