By
Godfrey Benjamin
April 20th, 2024
Major Bitcoin wallet provider, Blockchain, has just announced the launch of its own exchange platform, The Pit. The new platform seeks to promote adoption by simplifying the trading process for all its users.
The Blockchain Company popularly known for its services as a Bitcoin wallet provider and blockchain access has just announced the creation of its own exchange platform called The Pit. The platform will enable sales and purchase of cryptocurrency without the need for a third-party exchange.
Purported as “the world’s fastest crypto exchange” according to the official website, The Pit is primarily dedicated to the push for global cryptocurrency adoption and is doing this by making sure the use of crypto is as uncomplicated as possible. The Pit is now available in about 200 different countries and supports trading between most of the major digital currencies and fiat.
According to Nicole Sherrod, the head of retail products at blockchain, the new exchange firm is beginning with support for at least 26 different digital currencies which will be gradually released over the coming fortnight. Sherrod has also said that The Pit, though custodial, will allow access to non-custodial blockchain wallets with the same speed.
Sherrod further adds that the platform will most likely offer a higher rate of liquidity than other platforms. This is tied to the fact that Blockchain already supports millions of wallets and an exchange matching engine. Speaking on this access, she said:
“That’s what market makers are looking for. They want to co-locate with you. They want to directly connect to your matching engine. It’s the way it’s done on Wall Street.”
The matching engine for the new platform already boasts of experienced and skilled hands which were part of its creation. Reportedly, Tom Haller, who used to be in charge of software development for the New York Stock Exchange’s trading systems, was an integral part of its creation.
Most traditional asset exchange platforms calculate speed in microseconds and Sherrod has said it will pretty much run in the same way. However, there’s worry in some quarters about whether or not the speed being promised by the new platform could withstand the test of heavy pressure from consumers in the heat of trading. According to one expert, the only real way to know whether or not the speed will hold is when the platform is subjected to a high volume of trades.
Sherrod further spoke on the future of The Pit:
“Beyond the 26 [cryptocurrencies], we already know what our phase 2 accept listings are going to be, as well as phase 3.”
Sherrod also says The Pit intends to capitalize on a warm client relationship because most other platforms tend to be a little slower with client communication when there is serious trading activity.
For the first 30 days, the platform will not charge any trading fees. Subsequently, for trades less than $100,000 a month, 0.24% will be charged in taker fees and 0.14% for maker fees. Trades above $100,000 in a month have much lower fees. Even with this number, the fees can still significantly compete with some other platforms like Coinbase Pro and Kraken.
Blockchain is further looking to expand and is reportedly applying to be licensed in various regions. However, there is no indication of the regions being considered by the company.