Binance Invests $100M in Circle: Five-Year Partnership Set
Binance has invested $100 million in Circle Internet Group, the company behind the USDC stablecoin, through a $80.84 per share purchase of 1,237,011 Class A shares.
The investment was made under an agreement signed on September 17 and is part of a five-year commercial deal between the two companies.
Binance will promote USDC through Circle's Modular Smart Contract Wallet, which allows users to hold and move digital dollars without managing private keys. In return, Circle will pay Binance a monthly incentive fee calculated as a percentage of the USDC sitting in that wallet infrastructure.
Circle shares have been recovering from a recent dip, with the stock closing at $94.49 on Monday and trading at $95.50 in Tuesday's pre-market session. The investment is seen as a vote of confidence in Circle's business and may help to boost the company's revenue.