Bloomberg News reports that after banks cut off ties, crypto exchange Binance.US revamped its United States dollar on the ramp with the help of MoonPay as a new partnership.
Just 2 months after it became a crypto-only platform, Binance.US announced a new partnership with MoonPay. It is a crypto payments company. MoonPay lets users buy United States dollar-pegged stablecoin called Tether for using its platform.
On August 22, the crypto exchange announced that it would adopt USDT as the base asset for all transactions. Also, when it enters into a partnership with MoonPay, this firm will allow users to carry out transactions in US dollars.
More about partnership
The new partnership evolved when Binance.US suffered a breakdown with the banking partners, which witnessed the fiat deposits on the exchange to halt since June 9th.
Then, the company cited the intimidating and aggressive strategy of the SEC or the Securities and Exchange Commission. It had sued the crypto exchange and affiliates just four days before. This was the reason for the disruption.
The customers of Binance.US who are looking forward to funding their accounts will now be able to exchange dollars for the USDT. In turn, they can use this for purchasing other cryptocurrencies on the platform, as reported by Bloomberg News.
While on the one hand, the bank turned off deposits on the Binance.US platform, the partnership will extend to its users an on-ramp that will support purchases through plastic cards aside from Google Pay and Apple.
On June 23, the exchange was found to be subjected to a chain of issues with those withdrawals involving US dollar-denominated. However, the same was managed temporarily to recover functionality. However, at the same time, it also warned that this service might not be continued in the future.
Scenario before the lawsuit
Before Binance.US, along with its affiliates, which the lawsuit hit by the Securities and Exchange Commission, the exchange had supported the purchase and the sale of the much-sought-after cryptocurrency through direct US dollar withdrawals and deposits.
In March, several crypto exchanges and service providers had lost their banking partners when the banking crisis was at its peak. During the crisis, several crypto-friendly banks collapsed within just one week, including Signature Bank, Silvergate, and Silicon Valley Investment Bank.
