FX Companies Move to the Crypto World by Integrating Crypto Payment Solutions for Clients

It’s 2020 and experienced traders are becoming increasingly sophisticated, demanding key processes within their trading experience to be more secure and efficient, especially when it comes to onboarding processes, operations, and client communication. Forward-thinking traders are opting for faster, safer and more convenient solutions to invest their money.

With blockchain technology edging into most financial services in one way or another it was only a matter of time that it would be integrated into funding solutions as well. According to research conducted by PWC, the most likely business use cases of blockchain, as seen by 55% of respondents in a survey, is in Payments Infrastructure.

Responding to industry demands the Forex world has recently seen brokerages announcing that they are now accepting deposits in the stable cryptocurrency Tether (USDT), the first Bitcoin-based, fiat-pegged cryptocurrency built on the blockchain.

At the same time, cryptocurrency CFDs, which allow investors to speculate on the change in price of a cryptocurrency such as Bitcoin without taking physical ownership of the currency, are increasingly being marketed to consumers. These products are typically offered with leverage meaning a small amount of capital can control a larger amount in the market. Tethers can be used in a similar, decentralized and cryptographically secure environment as Bitcoin.

The fast development of emerging technologies is creating new opportunities not only within investment firms but also banks. HSBC is changing the competitive landscape and reported to have settled $250 billion (￡194.15 billion) worth of Forex trades using blockchain in 2018, suggesting the technology is continuing to gain traction. As the integration of blockchain technology grows, it’s likely that it will change the way companies, banks and individuals trade currencies for good.

Cryptocurrencies, Forex and CFDs are a high-risk, speculative investments. Anyone considering investing or trading, should be aware of the risks involved and carefully consider whether they are a suitable option.