You can now deposit and withdraw USD to and from your Bitso account using a select group of USD stablecoins*. Depositing any of these stablecoins will credit the exact deposit amount to your Bitso USD balance, and withdrawing will do the same. You can then use this USD balance to trade in our three USD books!
For example, if you send 10 USDC to your Bitso wallet, you will see your USD balance increased by 10 USD. If you then decide to withdraw 5 USD, you can choose one of the supported stablecoins to do so and your balance will be 5 USD**. This happens because Bitso offers a 1:1 conversion for this group of stablecoins to fiat and vice versa.
What are Stablecoins?
Stablecoins are cryptocurrencies that are pegged or backed to a reserve asset like the US dollar. A lot of stablecoins use the Ethereum network to operate. Stablecoins helps protect users against the volatility of cryptocurrencies and fluctuation in value. It gives users an alternative currency to save that cannot be controlled by a government or bank.
What are some things I can do with this conversion?
This 1:1 conversion allows you to:
Deposit different stablecoins and trade in a single book
Deposit a stablecoin and withdraw a different stablecoin
Deposit a stablecoin and withdraw “real” US Dollars*
Any other combination you can think about!
Does this conversion incur any fees?
No, no additional fees are charged to achieve this 1:1 conversion.
Can I deposit any USD stablecoin in Bitso?
No, only deposit the stablecoins that we support. You can find them by following the deposit flow on the website, and selecting the stablecoin option. As of September 2020, the list of supported USD Stablecoins for conversion are USD, PAX, BUSD, and HUSD.
If I send one of the supported stablecoins to my Bitso wallet, what will happen?
You will be credited the amount you sent in US Dollars!
Will I have sub-balances for each stablecoin?
No. You will only have one US Dollar balance. It is easiest to think about these stablecoins as Deposit and Withdrawal methods for your US Dollar balance on Bitso.
What about TUSD? It is also a USD Stablecoin, why don’t you offer this same conversion?
We currently do not offer this same conversion for TUSD and will continue treating TUSD as it currently exists on the platform. Please wait for more news on this.
Will there be a book against each Stablecoin?
No. We will only have books with USD. However, since we convert these stablecoins to USD, you can trade on these, more liquid, books!
Will I be able to send Bitso Transfers with these Stablecoins?
No. USD Bitso Transfers are currently unavailable.
How can I learn more about these stablecoins?
Learn more about USDC here: https://www.circle.com/en/usdc
Learn more about PAX here: https://www.paxos.com/pax/
Learn more about HUSD here: https://www.stcoins.com/
Learn more about BUSD here: https://www.paxos.com/busd/
*As of September 2020, the list of supported USD Stablecoins for conversion are USD, PAX, BUSD, and HUSD.
** Blockchain fees apply on withdrawals, so balance might not be 5USD exactly