Binance.US, the cryptocurrency exchange, has taken a strategic step to regain its United States dollar on-ramp services by collaborating with MoonPay, a prominent crypto payments company. This partnership emerged as a pivotal move for Binance.US, which recently transitioned into a crypto-only platform due to banking-related challenges.
Reviving USD On-Ramp Services
After encountering setbacks with its banking ties, Binance.US has sought to revive its United States dollar on-ramp services. The exchange has entered into a partnership with MoonPay, a significant player in the crypto payments sector. This collaboration aims to offer users the ability to purchase the U.S. dollar-pegged stablecoin Tether (USDT) through their platform.
Embracing USDT as the New Base Asset
Binance.US has announced (1) a notable shift in its operational approach by adopting USDT as the new "base asset" for all transactions. This strategic move positions USDT as a key digital asset for users to engage in various activities on the exchange. Furthermore, the partnership with MoonPay facilitates a seamless path for users to transact in USD, thereby enhancing user experience and convenience.
Overcoming Banking-Related Challenges
The decision to partner with MoonPay comes in the aftermath of Binance.US encountering disruptions with its banking partners. These challenges led to a suspension of fiat deposits on the exchange from June 9 onwards. The exchange attributed this disruption to the regulatory environment, citing aggressive actions from the U.S. Securities and Exchange Commission (SEC) as a contributing factor.
Enabling Convenient Funding Options
Despite the temporary halt in direct bank deposits, Binance.US users can now explore an alternative funding route. The collaboration with MoonPay enables users to exchange their dollars for USDT, which can subsequently be utilized to purchase a wide array of cryptocurrencies on the platform. This offers users the flexibility to fund their accounts conveniently, even without direct bank transfers.
Expanding Payment Methods
The Binance.US and MoonPay partnership brings forth an array of payment options for users. Alongside traditional debit and credit card transactions, users can also leverage digital payment platforms such as Apple Pay and Google Pay. This diverse range of payment methods ensures accessibility and ease of use for users seeking to engage with cryptocurrencies.
Looking Towards the Future
As Binance.US charts its course forward, the partnership with MoonPay signifies a strategic maneuver to adapt to evolving market dynamics and regulatory challenges. By embracing USDT as the base asset and providing alternative funding avenues, Binance.US aims to enhance user engagement and ensure a seamless experience for its customers.