Several companies interested to partner with Binance amid legal hurdles in the US

On Feb 18, 2023

Reportedly many public and private companies are willing to establish partnerships with Binance crypto exchange about stablecoin.

Binance is a first ranked crypto exchange. In the present time, Binance has no US-based banking partner & this is causing problems for 0.01% of Binance customers. Because of legal action against the Binance stablecoin (BUSD), Binance is also shifting from BUSD stablecoin to USDC stablecoin, to remain away from any kind of future financial risk citing panic selling probabilities.

On 18 Feb 2023, Patrick Hillmann, the Chief Strategy Officer (CSO) at the Binance exchange, spoke with Forbes. Hillmann said that to this date Binance has no US-based banking partner but confirmed that huge numbers of private as well as public companies are approaching to establish partnership about company’ stablecoin plans.

Forbes: Binance’s CSO Patrick Hillmann said that multiple private and public entities have expressed interest in partnering with Binance about stablecoin, especially in Europe and the Middle East. He also confirmed that Binance does not currently have a U.S. banking partner.
— Wu Blockchain (@WuBlockchain) February 18, 2023

The majority of these interested companies are from Europe & Middle East and this hints that Binance may soon focus on non-US dollar-pegged stablecoins.

As already Binance CEO Changpeng Zhao (CZ) confirmed that the exchange is exploring other fiat currencies pegged stablecoins.

We are exploring others, and non-USD based stablecoins.
— CZ 🔶 Binance (@cz_binance) February 13, 2023

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SEC vs BUSD stablecoin

BUSD stablecoin issuer company is Paxos. Paxos holds full ownership & management work of BUSD, along with its USDP stablecoin.

Just a week ago, The United States Securities and Exchange Commission (SEC) sent a Wells notice to Paxos about the securities nature of BUSD stablecoin. Paxos was also ordered by the New York watchdog to stop minting of new BUSD stablecoin.

On 7 Feb 2023, Binance announced to stop US dollar deposits & withdrawals on the platform. Binance CEO said that US-based banks were facing regulatory pressure that is why they terminated their partnership with the exchange.

From February 8th, we will temporarily suspend all USD bank transfers.

Only a small proportion of our users will be impacted by this and we are working hard to restart the service as soon as possible.

All other methods of buying and selling crypto remain unaffected.
— Binance (@binance) February 6, 2023

These things are showing that US authorities are not in the mood to allow the Binance exchange to show appearance in the US directly or indirectly.