Why Digital Wallets Need Omni USDT
Some people in the blockchain industry said: the war among digital wallets is on the verge. They think that many start-ups have rushed into digital wallet field and wallet developers have sprung up.
At first, this opinion can hardly hold water. Because, in the long run, the competence of the digital wallet is to realize decentralized exchange with cross-chain technology and supports Dapps based on various main chains.
While from the moment, the wallet who supports Omni USDT will have certain advantages.
It is undeniable that now the biggest consensus on the purpose of digital assets is speculation. While stable tokens are quite important to speculation, Omni version of the USDT, as the most stable token with high liquidity, has been playing an important role in risk hedging and asset preservation in the current trading scenario.
It is no exaggeration to say that there will not be the current prosperity of digital currency without USDT.
Nowadays, most of the digital wallets in the industry are developing decentralized exchanges, such as kyber protocol or Bancor protocol based on Ethereum to realize ERC20 token trading.
But the application of those exchanges currently cannot meet the need of most of the users no matter in transaction velocity or usage habit.
Furthermore, the decentralized exchanges have not realized atomic cross-chain swaps, so there is a long way for digital wallets to real decentralized exchanges.
Nevertheless, compared to providing decentralized exchange services that do not implement cross-chain transactions, digital wallets can be upgraded and have a change in the existing trading scenarios, among which supporting Omni USDT, USDT-based trading pairs, and providing OTC and financial services will become a rigid demand. The details are as follows.
01 To provide a safe and reliable storage solution for the large amount of USDT
Getting USDT through OTC transactions to gain access to the digital asset world is the beginning of all transactions. However, there is a long-standing and huge risk for OTC traders who offer OTC services: because of the long-term lack of a safe and reliable wallet, OTC traders have to deposit their digital currency in the exchanges, leaving the huge assets at high risk. Therefore, there is persistent demand in the market for wallets that can provide safe and reliable USDT storage solutions.
02 To provide traders with risk hedging and risk aversion solutions
Firstly, stable tokens can reflect the price of cryptocurrencies directly, allowing digital asset holders to have a clear picture of their fund. Secondly, due to the high risk and volatility of digital assets, it is important for digital asset holders to convert their tokens to stable coins to hedge and avoid risks. Exchanges that only support cryptocurrency transactions without trading pairs based on stable tokens can hardly win the market.
03 To provide convenient service for quantitative trading and arbitrage
A large part of exchange's trading volume comes from quant teams and users aiming to arbitrage. While both quantitative trading and arbitrage need stable tokens as a mean to keep the value profits earned or liquidate, storage of a certain amount of digital assets and stable tokens are inevitably required by quant teams, and users require on various exchanges. If the wallet does not support USDT, it will not provide convenience for users who conduct quantitative trading and arbitrage, which will impact the transaction depth and make it hard to build a perfect transaction ecology.
Therefore, it is easy to see that the competition between digital wallets is on the transactions now wallets who can provide quick transaction service as centralized exchanges do and safe storage solution for a mainstream stable token, USDT will win the users.
As the only decentralized wallet that has been safely guarding the user's assets and accompanying users from the beginning of the industry without even asset loss due to technical defects, Bitpie proposed "Centralized matchmaking with decentralized delivery" as early as February.
Bitpie is glad to announce that it has launched Omni USDT last week and will gradually open USDT-based trading pairs, OTC trading and financial products within one or two weeks.
We hope that our efforts will provide real and effective support to those in need and we can let users enjoy the services better than that of centralized exchanges by the security of the wallet.
At last, the digital wallets have a long way to go. At the current stage, I hope that people can pay more attention to how to provide good service to users rather than temporary competition.
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