Binance Buys Stake in Circle to Boost USDC Presence
Binance has invested $100 million in Circle, the company behind the stablecoin USDC. The investment comes as part of a new five-year agreement between the two companies to expand the presence of USDC on Binance's platform, particularly in emerging markets.
The deal involves Binance acquiring a direct stake in Circle through a private placement of ordinary A-class shares. Binance will hold onto these shares for at least two years, demonstrating its commitment to the partnership rather than a speculative bet.
Under the agreement, Circle will pay Binance a monthly commission calculated as a percentage of USDC balances held on Circle's infrastructure. In return, Binance has pledged to promote the use of USDC on its platform, with a focus on emerging markets.