By Tom Blitzer
Key Insights:
- Binance.US adapts to the MoonPay alliance after banking setbacks.
- Users gain alternative USD on-ramp through USDT transactions.
- Banking crisis reshapes crypto exchange strategies.
Binance.US, faced with recent banking challenges, has strategically allied with MoonPay, a leading crypto payments entity. This partnership emerges as a response to the crypto exchange’s need to re-establish its USD on-ramp, offering users an alternative method to acquire the U.S. dollar-pegged stablecoin, Tether (USDT), for platform transactions.
Navigating Through Challenges
Two months into adopting a solely crypto-focused approach, Binance.US declared its move to make USDT the primary “asset foundation” for all dealings. Their collaboration with MoonPay further offers users a fresh pathway to conduct USD transactions.
Nonetheless, this progression wasn’t devoid of challenges. On June 9, the platform faced a halt in fiat deposit activities. This interruption was attributed to its weakening relationship with financial allies. The Securities and Exchange Commission’s firm position was identified as a central factor, culminating in legal action against the platform and its associates.
Currently, Binance.US patrons can exchange dollars for USDT, enabling them to purchase different cryptocurrencies on the platform. Although Binance.US still doesn’t support direct bank deposits, its partnership with MoonPay offers a new avenue. Transactions can be made via debit and credit cards, and with the addition of Google Pay and Apple, the scope for payments expands even further.
On June 23, the platform faced complications with withdrawals denominated in USD. While an interim fix was put in place, there were warnings about its possible short-lived nature.
Before these obstacles, Binance.US had enabled users to buy and sell notable cryptocurrencies using USD transactions directly. This capability highlighted the platform’s dedication to user ease.
Zooming out, March saw tumultuous times in the crypto banking sector. Numerous banks linked with crypto, including Silicon Valley Investment Bank, Silvergate, and Signature Bank, unexpectedly shut down. This turmoil led to several crypto platforms and services severing ties with their banking partners.
In Retrospect
The alliance between Binance.US and MoonPay underscores the crypto exchange’s adaptability in a fluctuating financial environment. As the crypto realm continues, partnerships like these might be instrumental in determining the direction of digital currency transactions.