Binance.US, the American arm of the world’s largest crypto exchange, is partnering with web3 infrastructure provider MoonPay to provide its users with a novel ramp to convert cash into digital currency.
This alliance comes after Binance.US faced challenges with traditional banking partners and had to suspend U.S. dollar deposits.
Specifically, the partnership allows Binance.US users to convert dollars into tether (USDT) using various payment methods, including debit cards, credit cards, Apple Pay, and Google Pay. Once converted, the stablecoins are deposited into users’ Binance.US accounts, where they can be traded for other cryptocurrencies. MoonPay also enables users to convert their crypto holdings back into cash, with minimum sell orders of $30 in value.
As Binance.US transitions to becoming a crypto-only exchange, it has replaced USD with USDT as the new base asset for transactions. This move aligns with the American platform effort to find alternatives for users to access and trade digital assets in the absence of traditional banking partnerships.
MoonPay’s integration into Binance.US mobile wallets streamlines the process of converting fiat into stablecoins, eliminating the need for third-party banks. Additionally, MoonPay’s payments infrastructure provides a seamless and easily understood experience to investors to convert between fiat, cryptocurrency and non-fungible tokens (NFTs), further lowering the barrier to entry into the world of web3 early investing.
“To make it easier to fund your account with USDT, we’ve partnered with third-party payment providers like MoonPay to offer convenient new USD on-ramps that support USDT purchases with debit card, credit card, Apple Pay, and Google Pay,” Binance.US said.
“With respect to Binance.US users, we are providing a service for those users that want to purchase crypto as well as convert their crypto to fiat and deposit into their US bank account,” MoonPay added in an emailed statement.
MoonPay is a Miami-based crypto payments company that values itself at $3.4 billion. The firm is backed by investments from NBA star Paul George, former tennis star Maria Sharapova, and musicians Drake and Justin Bieber. The firm enforces basic know-your-customer (KYC) checks, such as providing personal information for verification.
Binance.US announced in June that its banking partners are preparing to cease dollar withdrawal channels in response to a crackdown by federal regulators. The American branch of the world’s largest crypto ecosystem also informed its users that it will no longer accept dollar deposits as it transitions into becoming a “crypto-only exchange.”
Even before the recent crackdown, Binance.US has been already struggling to find banking partners following the collapse of three banks that were known for working closely with the cryptocurrency industry.
The exchange has been left without banking services following the failures of US crypto-friendly banks, which forced the exchange to rely on middleman banks to store its funds. The loss of direct banking relationships has made it more difficult for Binance.US to operate smoothly as it must now navigate a complex web of intermediaries to access the banking services it needs.