Binance Buys $100 Million Circle Stock Amid Rising Stablecoin Competition
Binance has become a shareholder in Circle, the issuer of the USDC stablecoin, after purchasing $100 million worth of stock at a price of $80.84 per share. This deal comes as USDC faces increased competition from rival dollar tokens.
The sale was made on September 17 and is locked up for two years, although Binance can sell or transfer its shares under certain conditions. The agreement replaces an earlier marketing arrangement between the two companies that ran for two years but has now been extended to five years.
Circle will pay Binance a monthly incentive fee representing a percentage of the amount of USDC held through the Modular Smart Contract Wallet infrastructure service, as part of its promotion on Binance's platform. The deal is seen as a significant development in the stablecoin market, where competition is increasing.