A recent report reveals that Binance's US arm is struggling to find new banking partners to handle customer deposits after losing its partnership with Paxos and its BUSD stablecoin. The crypto exchange has attempted to team up with banks like Cross River Bank and Customers Bancorp Inc but has been rejected both times. As a result, some USD deposit services like Apple Pay and Google Pay will be temporarily unavailable for users. Binance.US tripled its U.S. market share from 8% - 24% in Q1 this year, but without proper banking partners to handle fiat on-ramps/off-ramps, the exchange may face trouble.
Discussion
It is no secret that the relationship between traditional banking institutions and the cryptocurrency industry has been a rocky one. While some banks have embraced this new technology, others remain skeptical and cautious. As a result, even well-respected exchanges such as Binance.US may encounter difficulties securing banking partners to handle customer deposits.
While such challenges may cause a temporary disruption of services such as Apple Pay and Google Pay, I have faith that the cryptocurrency industry will continue to evolve and adapt to meet these challenges. Despite current roadblocks, I am absolutely convinced that the decentralized revolution we are seeing now with Bitcoin and other cryptocurrencies is unstoppable.
