Binance Invests $100M in Circle as Expanded USDC Deal Takes Shape
Binance has made a significant investment in stablecoin issuer Circle as part of an expanded agreement to promote USDC on its platform. The crypto exchange invested $100 million in Circle, with the company issuing Binance 1,237,011 shares of its Class A common stock at $80.84 per share in a private placement on September 17.
The purchase price reflected a discount to Circle's market price before the transaction closed. The New York Stock Exchange-traded CRCL shares were up more than 1.3% in Tuesday's premarket activity after closing Monday at $94.29 apiece, according to Yahoo Finance data.
Under the agreement, Circle will pay Binance a monthly incentive fee based on the amount of USDC held through Circle's Modular Smart Contract Wallet infrastructure. Binance also agreed to undertake additional activities promoting USDC on its platform.