Binance US, the cryptocurrency-exclusive platform, has announced a new partnership with crypto payment firm MoonPay to allow users to purchase Tether, a stablecoin pegged to the US dollar, on their platform.
Partnership Following a Collapse
Binance, the world’s largest cryptocurrency exchange, announced on August 22nd that USDT would be accepted as the new “base asset” for all transactions and that its partnership with MoonPay would enable users to transact in USD. This new partnership comes after a collapse that led to the suspension of fiat deposits on Binance.US starting from June 9th.
At that time, the suspension was attributed to the “aggressive and threatening” tactics of the Securities and Exchange Commission (SEC), who had filed a lawsuit against Binance and its affiliates four days prior. According to the announcement, Binance US customers who want to deposit funds can now convert their dollars into USDT, which can then be used to purchase other cryptocurrencies on the platform.
Bank Failures Raise Concerns
While direct bank deposits remain disabled on Binance US, the partnership offers users a platform that supports purchases through Apple and Google Pay, as well as bank and credit cards. On June 23rd, the exchange experienced a series of issues with USD withdrawals, but managed to temporarily restore functionality and warned of a potential future suspension of the service.
Before being affected by the SEC lawsuit, Binance US and its affiliates supported the trading of popular cryptocurrencies through direct USD deposits and withdrawals. In March, many crypto exchanges and service providers lost their strategic partners in the midst of a banking crisis, as several crypto-friendly banks, including Silicon Valley Investment Bank, Silvergate, and Signature Bank, went bankrupt within a few weeks.
