Skrill Adds Crypto-Crypto Exchange Service

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Skrill, the popular digital wallet provider, has announced a further step into the crypto world by introducing a crypto-to-crypto buy and sell service for its users. Skrill launched a fiat-to-crypto on-ramp feature last year and at the time stated that it was just the start of their crypto adventure, and so it has proved. The introduction of crypto-to-crypto transfers will see Skrill users afforded access to faster and lower-fee transactions across their digital asset portfolio.

Middleman Removed

London-based Skrill was founded in 2001 as Moneybookers, and after 17 years of offering fiat-only payment solutions it jumped into the crypto world by allowing users to buy, sell, and hold crypto on the platform. The drawback with this system however was that if a Skrill user wanted to switch from one crypto to another they would have to convert it to fiat first, but this update removes the middleman. Skrill CEO Lorenzo Pellegrino stated in an interview with BitStarz News in 2018 that removing the extra fiat element was “the ultimate objective”, which has now been achieved.

Users Still Don’t Own Their Crypto

The new platform will involve BTC pairings to start with, but Skrill has said that it expects to offer new pairings over the next few months, meaning that 2020 could be a very exciting year for the company, and for crypto users. It is important to note however that Skrill does not operate like a regular crypto exchanges, in that users never own the crypto outright, as Pellegrino explained in our interview:

We do not offer crypto wallets to users, and they do not own the cryptocurrency. We do this through partnerships with the biggest and most reputable providers that are updating our crypto/fiat balances in real time and storing our crypto assets.

It is important to realize therefore that if you by crypto through Skrill you don’t actually own the asset yourself, you are only exposed to the volatility of it. This may be enticing for beginners who wouldn’t know a hardware wallet if one mugged them in the street, but for seasoned investors, the idea that they won’t own their crypto might not be too appealing.