Binance.US, after transitioning to a crypto-only platform two months ago, has announced a partnership with crypto payments firm MoonPay. This collaboration will allow users to buy the U.S. dollar-pegged stablecoin Tether (USDT) to use on its platform, effectively reintroducing USD transactions. The partnership with MoonPay provides a path for users to transact in USD, adopting USDT as the new “base asset” for all transactions.
The move comes after Binance.US suffered a breakdown with its banking partners, leading to the halt of fiat deposits on the exchange as of June 9. The crypto exchange cited “aggressive and intimidating” tactics from the Securities and Exchange Commission (SEC) as the reason for the disruption.
Overcoming challenges: Binance.US’s journey from crypto-only platform to reintegrating USD transactions
Prior to the SEC’s lawsuit, Binance.US supported the purchase and sale of popular cryptocurrencies through direct USD deposits and withdrawals. The partnership with MoonPay now offers users an on-ramp that supports purchases through debit and credit cards along with Apple and Google Pay.
The integration with MoonPay is part of Binance.US’s efforts to provide new USD on-ramp solutions. According to an email sent to customers, Binance.US has been working on integrating solutions like MoonPay, with one indicator pointing to Tether’s USDT as the sole supported asset at launch.
The partnership also comes at a time when the crypto industry faced a wider banking crisis, with several crypto-friendly banks collapsing within a few weeks. Binance.US was one of the businesses affected by this sudden banking collapse, creating a gap in crypto on- and off-ramps.
In addition to the MoonPay collaboration, Binance.US updated its terms of service, engaging with U.S.-based custodians that maintain FDIC insurance, provided both the relevant Binance.US affiliate and the custodian remain in compliance with regulatory requirements.
The partnership between Binance.US and MoonPay marks a significant step in Binance.US’s journey to overcome challenges and reintegrate USD transactions. By leveraging Tether, the collaboration aims to bridge the gap created by the breakdown with banking partners and the subsequent transition to a crypto-only platform.
The collaboration between Binance.US and MoonPay is poised to enhance the user experience on the Binance.US platform, offering a new path to transact in USD. By integrating traditional financial transactions with secure and regulated crypto infrastructure, the partnership signals a continued effort to advance a more flexible and resilient crypto market structure.
