Just two months after transitioning to a crypto-exclusive platform, Binance.US revealed an innovative partnership with crypto payments company MoonPay. The collaboration aims to enable users to purchase the U.S. Dollar-pegged stablecoin Tether (USDT) for $1.00 for use on the Binance.US platform.
In a statement issued on August 22, the cryptocurrency exchange announced a pivotal shift, adopting USDT as the new “base asset” for all transactions. This strategic partnership with MoonPay allows users to conduct transactions using USDT, effectively facilitating a seamless transition to transacting in USD.
This announcement follows Binance.US facing challenges with its banking partners, leading to a suspension of fiat deposits on the platform since June 9. The exchange attributed this abrupt disruption to the “aggressive and intimidating” tactics employed by the U.S. Securities and Exchange Commission (SEC), which had filed a lawsuit against Binance and its affiliates merely four days prior.
Binance.US customers eager to fund their accounts can now exchange their dollars for USDT, subsequently utilizing this stablecoin to engage in transactions involving other cryptocurrencies on the platform, according to the official statement. While direct bank deposits remain unavailable, this partnership offers users an accessible on-ramp, supporting purchases through credit and debit cards, and Apple and Google Pay.
Notably, on June 23, the platform experienced a series of complications related to USD-denominated withdrawals. Although the functionality was briefly restored, the exchange cautioned that this service would eventually be phased out.
Before the SEC lawsuit cast a shadow on Binance.US and its affiliates, the platform had facilitated purchasing and selling popular cryptocurrencies through direct USD deposits and withdrawals. The new partnership with MoonPay reflects a strategic pivot, aiming to navigate the regulatory landscape and offer users an alternative gateway to interact with cryptocurrencies on the platform.
This development mirrors a broader trend witnessed earlier this year when several crypto exchanges and service providers faced setbacks with their banking partners. A banking crisis swept through the industry, leading to the collapse of crypto-friendly banks such as Silicon Valley Investment Bank, Silvergate, and Signature Bank within a remarkably short timeframe.
As Binance.US and its users adapt to this new era, collaborating with MoonPay is a beacon of innovation, presenting a streamlined approach to transacting in the crypto sphere amidst regulatory challenges and evolving market dynamics.
