Binance Buys Stake in Circle for $100M as USDC Partnership Deepens

Binance has significantly expanded its partnership with Circle by purchasing a $100 million stake in the stablecoin issuer. The investment was made through the purchase of approximately 1.24 million shares at a price of $80.84 per share on September 17, according to a regulatory filing.

Circle is the behind-the-scenes force behind USDC, a major dollar-pegged token with a market capitalization of nearly $75 billion, as reported by CoinMarketCap data. Stablecoins like USDC are designed to maintain a stable value and have become increasingly popular for their speed in moving money across crypto markets.

Under the terms of the expanded partnership, Binance will pay Circle a monthly incentive fee and has agreed to promote USDC on its platform through various activities. The arrangement has a five-year term, although either party can terminate it early under specific circumstances.