Just two months since becoming a crypto-only platform, Binance.US has joined forces with MoonPay, a crypto payment firm. The main objective of this collaboration is to allow users to acquire the USD-pegged stablecoin Tether (USDT), which holds a value of $1.00, for utilization on the Binance.US platform.
On August 22nd, Binance.US made a significant announcement: USDT would become the new “base asset” for all transactions. This decision was accompanied by a partnership with MoonPay, creating a pathway for users to conduct transactions linked to USD.
This strategic move comes in response to Binance.US experiencing interruptions in its banking ties, prompting the halt of fiat deposits on June 9th.
The disruption stemmed from the Securities and Exchange Commission (SEC) taking legal action against Binance.US and its affiliates. Subsequently, Binance.US has taken steps to enable the conversion of dollars into USDT, allowing users to then obtain different cryptocurrencies on the platform.
Binance.US and MoonPay Collaboration: Enhancing USD On-Ramp Amid Withdrawal Challenges and Past Banking Crisis
While traditional bank deposits remain unavailable on the platform, the collaboration with MoonPay introduces a USD on-ramp. This USD on-ramp supports transactions using debit and credit cards, as well as Apple and Google Pay.
Nevertheless, on June 23rd, the exchange faced issues with USD withdrawals, which were temporarily resolved. Nonetheless, there’s a plan to discontinue this service soon.
Prior to the SEC lawsuit’s impact on Binance.US and its affiliates, the platform allowed direct USD deposits and withdrawals for popular cryptocurrencies.
In March, a broader banking crisis unfolded, resulting in the collapse of several crypto-friendly banks within weeks. Among them were Silicon Valley Investment Bank, Silvergate, and Signature Bank. Consequently, numerous crypto exchanges and service providers experienced the loss of their banking partnerships.
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