Binance.US, one of the leading cryptocurrency exchanges in the United States, has announced its partnership with MoonPay, a prominent fiat-to-crypto payment solutions provider. This collaboration is expected to simplify the process of purchasing cryptocurrencies using US Dollars while adhering to regulatory standards.
Just two months following its transition to a cryptocurrency-exclusive platform, Binance.US has unveiled a fresh collaboration with MoonPay, a cryptocurrency payment solutions company. This partnership where Binance uses Moonpay will enable users to acquire the U.S. dollar-anchored stablecoin Tether (USDT) at a rate of $1.00, expanding options for utilization within the Binance.US ecosystem.
Navigating Challenges: Binance.US Adopts USDT as Base Asset Amid Banking Partner Setback
On August 22, the cryptocurrency exchange revealed its adoption of USDT as the fresh “base asset” for all trading activities. Moreover, the collaboration with MoonPay facilitates a channel through which users can engage in transactions using USD.
This recent partnership emerges following Binance’s uses of Moonpay encountering a setback with its banking associates, leading to the suspension of fiat deposits on the platform from June 9 onwards.
During that period, the exchange attributed the disruption to the Securities and Exchange Commission’s (SEC) litigation against the exchange and its affiliated entities, which had occurred merely four days before the fiat deposit halt. The exchange characterized the SEC’s actions as “aggressive and intimidating.”
Streamlined Funding Options for Binance.US Users: Purchase USDT with USD for Crypto Transactions
Binance.US account holders can now convert their dollars into USDT, which subsequently grants them the ability to acquire various other cryptocurrencies available on the platform. The statement highlighted this newfound capability.
Although Binance.US continues to suspend direct bank deposits, the collaboration introduces an accessible pathway for users to make purchases using debit and credit cards, as well as through Apple and Google Pay.
In a prior incident on June 23, the exchange encountered a sequence of challenges relating to USD-denominated withdrawals. Nevertheless, it managed to restore the function temporarily. During this occurrence, a forewarning was issued, indicating that the service would ultimately be phased out shortly.
Before the SEC Lawsuit: Binance.US Enabled Direct USD Transactions for Major Cryptocurrencies
Before the SEC initiated legal action against Binance.US and its affiliated entities, the exchange facilitated the trading of popular cryptocurrencies through direct USD deposits and withdrawals.
In the preceding March, several cryptocurrency exchanges and service providers encountered the loss of their banking partners, a consequence of a larger banking turmoil. This tumultuous period witnessed the downfall of multiple crypto-friendly banks, such as Silicon Valley Investment Bank, Silvergate, and Signature Bank, all within a short span of a few weeks.
While the exchange had faced obstacles due to halted fiat deposits and withdrawals, this partnership opened new avenues for users to fund their accounts using credit and debit cards, Apple Pay, and Google Pay. The move aligns with the broader trend of exchanges proactively seeking compliant and user-friendly solutions amid evolving regulatory frameworks.
As Binance.US forges ahead with its renewed approach, it signifies a notable shift toward creating a more stable and user-oriented trading environment. The adoption of USDT as a base asset and the integration of MoonPay’s solution underscores the industry’s continuous drive to innovate and adapt. This partnership not only reinforces the resilience of Binance.US but also points to a future where collaborations between exchanges and payment solution providers will likely reshape the way individuals enter and navigate the world of cryptocurrencies.
In the ever-evolving landscape of cryptocurrency exchanges, Binance uses Moonpay stands as a testament to the industry’s resilience and adaptability. By adopting USDT as its new “base asset,” Binance.US takes a pivotal step toward enhancing user experience and accessibility. The partnership addresses the recent disruptions stemming from regulatory challenges and showcases the exchange’s commitment to providing a seamless on-ramp for users to engage with cryptocurrencies.
Also Read: BRICS bank to issue Indian Rupee bond for the first time.
