Obvious answers that were probably already considered... coinbase, circle, itbit maybe paypal. Circle would be the best since they are now allowed to hold USD.
I agree Circle is the best option. There withdrawal limits are $3000 weekly for bank accounts and they don't charge transaction fees, although an ACH fee is really only about $0.15.
Humor me here, what would a pitch to circle look like? What would be their incentive (in the grand scheme of things?) I'm genuinely curious.
Circle is doing everything they can to make a gateway for bitcoin (cryptocurrencies) and have people using bitcoin (crypto currencies) without them realizing that they are. They have in the past year created the best gateway for that purpose. Aside from the speed of Bitcoin transactions the real problem that they have in garnering more adoption is that bitcoin is a commodity. So even though Circle now has USD accounts, when a user sells bitcoin for usd they are supposed to keep track of and report any gains or losses. Using bitusd would allow for the user to use cryptocurrencies without worrying about reporting requirements. Also bitassest markets are privatized, so not only can they control the market and but also accrue revenue from trading fees.
So what you're suggesting as a benefit to circle is that bitusd would potentially present less or no tax burden. I'm completely out of my depth here but if bitusd was treated as a commodity, under a 2.0 scheme with a possible bitusd floor of $1.0 and a market driven premium of perhaps 1.01 - 1.15 there may yet exist slight capital gains opportunity for operators working with a large enough volume.
Beyond the potential benefits of bitusd from a tax standpoint, what other advantages to circle, or a similar entity, exist in using bitshares 2.0 as opposed to bitcoin / USD? What's the sweet deal we have to offer our as of yet unidentified ACH processor partner? There has to be one or we're not going to get the partnership, especially not if we seem like we're going to thank them and then eat their lunch.
There is no capital gain if bitusd is bought and sold at face value (with a spread). For example, the reason why the bitcny market works very well is that btc38 (facilitated by transwiser) accepts bitcny at facevalue. To that end yunbi also has a cny/bitcny market where bitcny is bought and sold at face value less the marginal spread of 0.2-4%. Bitassets are not commodities they are fixed income financial products. Even if there is a capital gain, it is negligible. That doesn't mean you don't owe the government tax dollars it just means its easier to account for.
The real benefit for a company like Circle is that it is trying to appeal to millennials that want alternatives to the current banking options. Bitusd presents a viable alternative where bitcoin does not because of its volatility. The whole point of bitusd, regardless of integration with a major partner like Circle, is that it provides all the advantages of a cryptocurrency without the drawbacks that bitcoin presents (mainly price volatility and speed of payment settlement).
I'm not saying that Circle will partner with bitshares, but if they were more forward thinking and less enamored with bitcoin they would. The only drawback is that there is no regulatory guidance on cryptocurrency derivatives, which presents legal risks that they have not fully investigated.