Binance.US Partners with MoonPay to Restore USD On-Ramps, Offering a Banking Alternative

In a strategic move aimed at re-establishing USD transactions on its platform, Binance.US has unveiled a collaboration with MoonPay, a crypto payment solutions provider. This development comes approximately two months after Binance.US transitioned into a cryptocurrency-exclusive platform. The focus of this partnership is to offer users the ability to acquire the U.S. dollar-pegged stablecoin Tether (USDT), enabling them to engage in transactions on the exchange using USD.

The cryptocurrency exchange made a significant announcement on August 22, declaring that USDT would henceforth serve as the new “base asset” for all its transactions. By teaming up with MoonPay, Binance.US has paved the way for users to conduct transactions in USD, bridging the gap left by the cessation of direct bank deposits on the platform.

The catalyst behind this strategic alliance was a recent setback faced by Binance.US concerning its banking partnerships. On June 9, fiat deposits on the exchange were abruptly halted, resulting in a disruption of services. The exchange attributed this disruption to the “aggressive and intimidating” actions of the U.S. Securities and Exchange Commission (SEC), which had filed a lawsuit against Binance.US and its affiliates just four days prior.

The essence of the Binance.US-MoonPay partnership lies in providing an alternative on-ramp for customers seeking to fund their accounts. Users can now exchange their dollars for USDT, which can subsequently be utilized to acquire various other cryptocurrencies available on the platform. Although direct bank deposits still remain suspended on Binance.US, the collaboration introduces an avenue for users to make purchases using debit and credit cards, as well as popular digital payment methods like Apple Pay and Google Pay.

In the recent past, the exchange encountered complications related to USD-denominated withdrawals on June 23. Although these issues were temporarily rectified, the platform cautioned users that this service would eventually be discontinued.

Before facing the legal proceedings initiated by the SEC and encountering banking challenges, Binance.US facilitated the purchase and sale of prominent cryptocurrencies through direct USD deposits and withdrawals. However, the broader crypto landscape witnessed a banking crisis earlier in the year, leading to the loss of banking partners for several crypto exchanges and service providers. This crisis saw the collapse of well-known crypto-friendly banks like Silicon Valley Investment Bank, Silvergate, and Signature Bank, all within a short span of time during March.

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