Binance has invested USD 100 million in Circle, the issuer of the stablecoin USDC, and also signed a new five-year commercial agreement to expand the use of USDC worldwide, especially in emerging markets.
According to the disclosed filings, Circle issued 1,237,011 Class A shares to Binance at a price of USD 80.84 per share in a private placement. The deal was completed on September 17, and the purchase price was about 5% lower than the market price of CRCL prior to the transaction. Binance is also restricted from transferring or selling these shares for up to two years, except in certain circumstances under the agreement.
Expanding USDC globally
Under the new agreement, Binance will strengthen its promotion and integration of USDC on its platform, while Circle will provide the infrastructure to support holding and using this stablecoin. The two parties will focus in particular on emerging markets, where demand for digital USD and cross-border remittance tools is increasing. Circle will also pay Binance a monthly incentive fee based on the amount of USDC held through Circle’s wallet infrastructure.
Impact on the stablecoin market
The new agreement could significantly shift the competitive balance between USDC and USDT. USDC currently has a market capitalization of about USD 75 billion, making it the second-largest stablecoin in the market, while Binance owns one of the largest crypto trading and wallet ecosystems globally. Binance’s direct investment in Circle, together with its commitment to drive USDC, creates a deeper linkage.
According to the disclosed filings, Circle issued 1,237,011 Class A shares to Binance at a price of USD 80.84 per share in a private placement. The deal was completed on September 17, and the purchase price was about 5% lower than the market price of CRCL prior to the transaction. Binance is also restricted from transferring or selling these shares for up to two years, except in certain circumstances under the agreement.
Expanding USDC globally
Under the new agreement, Binance will strengthen its promotion and integration of USDC on its platform, while Circle will provide the infrastructure to support holding and using this stablecoin. The two parties will focus in particular on emerging markets, where demand for digital USD and cross-border remittance tools is increasing. Circle will also pay Binance a monthly incentive fee based on the amount of USDC held through Circle’s wallet infrastructure.
Impact on the stablecoin market
The new agreement could significantly shift the competitive balance between USDC and USDT. USDC currently has a market capitalization of about USD 75 billion, making it the second-largest stablecoin in the market, while Binance owns one of the largest crypto trading and wallet ecosystems globally. Binance’s direct investment in Circle, together with its commitment to drive USDC, creates a deeper linkage.