Binance Dives Deeper into Stablecoin Ecosystem with $100 Million Circle Investment
Binance made two significant moves in its partnership with Circle, the issuer of USDC. First, it acquired $100 million worth of shares in Circle at a discounted price of $80.84 per share. The purchase included 1,237,011 Class A shares and was completed on September 17.
The share acquisition is not the only part of the deal, however. Binance also signed a new five-year commercial agreement with Circle to increase the use of USDC. As part of this agreement, Circle will make monthly incentive payments to Binance based on a certain percentage of the USDC balance held through Circle's Modular Smart Contract Wallet infrastructure.
The partnership is designed to promote the use of USDC on Binance's platform. To achieve this, Binance will carry out additional promotional activities for USDC on its platform. The terms of the agreement include a two-year transfer restriction on the shares acquired by Binance, with certain exceptions and early termination provisions applying.