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Virtuse to open the simplest USD Fiat Gateway
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Virtuse to open the simplest USD Fiat Gateway

Virtuse Admin
by Virtuse Admin
16. March 2020
Virtuse to open the simplest USD Fiat Gateway

Virtuse made a significant step forward in allowing first-time crypto users the ability to invest on its platform.  Using APIs from Paxos Trust Company, Virtuse has opened a fiat gateway that is one of the fastest and simplest USD on/off ramps in the market.  After Binance, Virtuse is one of the early adopters to integrate this solution. 

The fiat gateway API solution now available on Virtuse was launched by Paxos Trust Company, a New York-regulated financial institution that digitizes and mobilizes assets. The Paxos US dollar gateway allows clients to deposit, withdraw and use USD as collateral within the Virtuse ecosystem.

A useful analogy for this gateway is a coin machine in an arcade. In order to get the coins to play with, they need to put fiat currency into the machine, which will then pay out of tokens.

“Our mission is to become a bridge between digital and traditional assets, and Paxos infrastructure is vital in providing the building blocks for our product,” explained Virtuse CEO and founder Ras Vasilisin.

The new fiat gateway allows individuals to participate in a global financial system by investing, storing wealth and making payments without a need to own a bank account.  

 

Stablecoins – Temporarily escape volatility

Virtuse clients can now deposit USD via the secure gateway, receiving in return regulated stablecoins Paxos Standard (PAX) or Binance USD (BUSD), which are 100% backed by US dollars held in reserve by Paxos. The stablecoins can be held, transferred, exchanged, and withdrawn back through the gateway into the traditional financial system when required. 

Stablecoins have gained traction as they offer the best of both worlds: the instant processing of payments, and the volatility-free stable value of fiat currency. 

Stablecoins can be thought of as a storage place for investors and traders to temporarily escape the massive volatility of the crypto markets. They serve as a lifeboat to escape to when traders want to hedge their crypto portfolio without cashing out to fiat.

Given that large firms like JP Morgan and Facebook are launching their own stablecoins and that more than 60 countries are looking into their own central bank-issued digital currencies, it seems this concept will be imperative in the future of an open financial system. 

In the last three years, the landscape of investing and payments has changed beyond recognition. This digitalization has largely helped to eliminate middlemen and this new Virtuse fiat gateway is another step towards building the future of finance.


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