Binance Invests Heavily in Circle, Boosting USDC Partnership

Binance has taken its partnership with Circle to the next level by purchasing a $100 million stake in the stablecoin issuer. This move deepens Binance's ties with the company behind USDC, a major dollar-pegged token.

The investment comes after Circle issued and sold roughly 1.24 million shares to Binance at a purchase price of $80.84 per share on September 17. As a result of this deal, Circle shares are up nearly 2% in premarket trading.

The expanded commercial arrangement between the two companies has a five-year term and includes a monthly incentive fee paid by Circle to Binance. Additionally, Binance has agreed to undertake certain activities to promote USDC on its platform.