Binance Invests Heavily in Circle to Promote USDC

Circle, the issuer of USDC, a major dollar-pegged stablecoin, has received a significant investment from Binance. The crypto exchange purchased $100 million worth of Circle shares at a price of $80.84 per share.

The deal was finalized on September 17 and deepens the commercial partnership between the two companies. As part of the agreement, Binance will pay a monthly incentive fee to Circle. Additionally, Binance has committed to promoting USDC on its platform.

The expanded partnership has a five-year term, although either party can terminate it early under certain circumstances. This investment is a significant boost for Circle, which has seen its shares rise by nearly 19% so far this year, giving the company a market cap of around $24 billion.