Key Points:
- MoonPay Alliance: Binance.US teams up with MoonPay to restore USD transactions.
- USDT Integration: USDT becomes the new base asset for all Binance.US transactions.
- Fiat Accessibility: Users can now convert dollars into USDT for crypto purchases.
Binance.US has turned to MoonPay as an alternative banking solution to restore its USD deposit capabilities following a disruption in its banking relationships. The cryptocurrency exchange had shifted to an exclusively crypto-based platform a couple of months ago. However, in a recent development, Binance.US has partnered with MoonPay, a cryptocurrency payments company, to enable users to purchase the USD-pegged stablecoin Tether (USDT) for use on its platform.
In an announcement on August 22nd, Binance.US declared that USDT would now serve as the new “base asset” for all transactions on its platform. Through the collaboration with MoonPay, users are given a pathway to conduct transactions in USD. This strategic partnership has emerged as a response to the setback Binance.US encountered when its banking partners suspended fiat deposits on June 9th.
Today, we’re excited to introduce a new $USD on-ramp!
✔️ Buy $USDT on https://t.co/AZwoBOgsqS through payment partners like @moonpay, which supports debit & credit card, Apple Pay, and Google Pay.
✔️ Sell USDT for USD to withdraw via bank transfer.
Learn more & get started ⤵️
— Binance.US 🇺🇸 (@BinanceUS) August 22, 2023
The halt in fiat deposits was attributed to the Securities and Exchange Commission (SEC), which had filed a lawsuit against Binance.US and its affiliates just days prior, using what the exchange deemed as “aggressive and intimidating” tactics. To address this situation, Binance.US users can now convert dollars into USDT, which can then be utilized to acquire other cryptocurrencies within the platform.
While traditional bank deposits remain inaccessible on Binance.US, this collaboration introduces an avenue for users to make purchases using debit and credit cards, as well as Apple Pay and Google Pay. It’s important to note that on June 23rd, Binance.US faced complications with withdrawals denominated in USD. Although a temporary solution was implemented to restore this function, the exchange cautioned that the service might be discontinued in the near future.
Before the legal action from the SEC impacted Binance.US and its associates, the exchange had facilitated the trading of popular cryptocurrencies through direct USD deposits and withdrawals. The wider banking crisis that unfolded in March saw multiple cryptocurrency exchanges and service providers losing their banking partners, including well-known crypto-friendly banks like Silicon Valley Investment Bank, Silvergate, and Signature Bank.
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