Additionally, the smaller exchanges will get peer-to-peer (P2P) fiat-to-cryptocurrency exchange services and local bank API integrations according to the company’s statement. Implementing Binance Cloud would ease potential exchange operators of the software challenges involved in scalability and security. Hence, the operators get more time to get the proper registrations and licenses in their jurisdiction. It will provide security controls, matching engines, and liquidity of the main Binance.com exchange. The back end will be Binance itself, even though the local exchange may have its branding and local fiat currency. This strategy will bring the advantage of more liquidity, although indirectly and probably in places where Binance does not currently operate. The company said: Binance also plans to include token launch capabilities through an IEO (initial exchange offering) platform together with staking and OTC (over-the-counter) trading services. Hence, Binance would have to compete with a formidable infrastructure provider, AlphaPoint.
Competition
AlphaPoint was founded in 2013. It dominates the current crypto exchange market offering software solutions to some of the biggest exchanges globally. However, it never discusses specific clients. Exchanges are challenging to build since they comprise of many elements like order types, matching, and many other features. Scaling and security during massive bull runs are major concerns for exchanges. The first major digital asset exchange entirely powered by Binance Cloud will launch in early March 2020.
