Binance.US has entered into a strategic partnership with MoonPay, a crypto payments company, to reintroduce United States dollar (USD) on-ramps for its users. The move comes after the US exchange faced challenges with its banking partnerships, leading to the suspension of fiat deposits earlier this year. Through this collaboration, Binance.US aims to offer users a pathway to transact in USD once again using the USDT stablecoin.
Binance.US Adopts USDT as Base Asset
Binance.US recently declared USDT as its new “base asset” for all transactions on its platform. This transition signals a shift in its operational strategy, enabling users to utilize USDT for their activities. To facilitate this shift, they have joined forces with MoonPay, allowing users to purchase USDT using fiat currencies. This collaboration not only rejuvenates USD ramps but also opens the door for users to access various cryptocurrencies on the platform.
MoonPay Partnership Eases USD Transactions
The partnership with MoonPay provides a practical solution for Binance.US customers to fund their accounts using USD. Users can exchange their dollars for USDT through debit and credit cards, as well as popular payment methods like Apple Pay and Google Pay. Although direct bank deposits remain inactive on Binance.US, this collaboration ensures that users can seamlessly convert USD into USDT, enabling them to engage in cryptocurrency trading and investment activities.
Overcoming Banking Setbacks
Binance.US’s decision to form this alliance with MoonPay follows a period of disruption caused by a breakdown in its banking relationships, leading to the suspension of fiat deposits since June 9. The exchange cited regulatory pressure, specifically from the Securities and Exchange Commission (SEC), as the primary reason for this setback. By teaming up with MoonPay, the US exchange aims to offer an alternative route for users to engage with USD-backed cryptocurrency trading.
The partnership between Binance.US and MoonPay marks a strategic move to address the challenges posed by the suspension of fiat deposits and to reestablish USD ramps. By leveraging the stability and convenience of USDT, the US exchange aims to provide users with a reliable way to transact in USD and access the cryptocurrency market once again. This collaboration not only demonstrates adaptability in the face of regulatory pressures but also showcases the cryptocurrency industry’s commitment to innovation and user accessibility.