Binance invests $100 million in stablecoin issuer circle This was done as part of a five-year agreement that calls for the world’s largest cryptocurrency exchange to promote Circle’s flagship USDC on its platform.
Circle stock rose more than 1% in premarket trading Tuesday.
The agreement signals a move for USDC to expand beyond its traditionally focused base in the United States and compete more directly with stablecoin giant Tether in the international crypto market. Under the terms of the agreement, USDC will gain access to Binance’s massive global user base in exchange for Circle paying a “monthly incentive fee” to Binance based on its USDC balance.
Aligning its financial interests with USDC’s growth, Binance has agreed to purchase $100 million worth of Circle stock at $80.84 per share, subject to a lock-up of up to two years with certain exceptions.
“Binance has built one of the world’s largest and most dynamic platforms for using digital currencies, creating the internet’s largest financial super app and becoming the world’s most widely used wallet for dollar stablecoins,” Circle CEO Jeremy Allaire said in a statement. “We see an incredible opportunity to leverage USDC to expand access to dollars, support savings and investment with innovative digital asset products, and reach people and businesses across the world’s emerging markets.”
Circle development
Circle has been looking to build its business beyond issuing USDC, launching the Arc blockchain last week and moving into nanopayments and agent commerce, but the company still needs USDC to power its expansion. Circle is betting that by offering it to Binance’s broader user base, its flagship product will gain ground internationally and help build other parts of its business.
“Circle has earned its place as one of the world’s most trusted issuers across USDC, Ark, and an infrastructure that is reshaping the way value moves across borders,” Binance co-CEO Richard Teng said in a statement. With the latest partnership, Binance “will help build a more inclusive, transparent, and compliant digital economy. A stable, reliable digital dollar shouldn’t be a privilege; it should be available to anyone with a phone. That’s the future this partnership is designed to enable.”
Circle’s USDC and Tether’s USDT stablecoins serve as digital versions of the U.S. dollar and aim to maintain a stable 1:1 value with the greenback, but they have taken different paths to attract users and financial partners.
According to CryptoQuant, USDT remains large, with around $183 billion in circulation, while USDC has around $75 billion and a strong presence in international trade. USDC, on the other hand, has focused its pitch on regulated markets, transparency, and payments. The battle between the two will ultimately be a battle over what will become the default for global cryptocurrency trading, payments, and finance.
