Binance Buys $100 Million Stake in Circle, Deepening USDC Partnership

Circle said on Tuesday that Binance has purchased a $100 million stake in the stablecoin issuer, strengthening the cryptocurrency exchange’s ties with the company behind USDC, a major US dollar-pegged digital token. Circle shares rose nearly 2% in premarket trading following the announcement.

According to a regulatory filing, Circle issued and sold approximately 1.24 million shares to Binance on September 17 at $80.84 per share. The expanded commercial agreement has a five-year term, although either party can terminate it early under certain specified circumstances. Circle also disclosed that it has agreed to pay Binance a monthly incentive fee, while Binance will undertake activities to promote USDC on its platform.

Circle issues USDC, a dollar-pegged stablecoin with a market capitalisation of nearly $75 billion, according to CoinMarketCap data. Stablecoins are increasingly used to transfer funds across cryptocurrency markets and facilitate payments. Circle shares have gained approximately 19% so far this year, giving the company a market capitalisation of around $24 billion.

Pic Courtesy: google/ images are subject to copyright