Binance isn’t simply diverting flow to USDC this time. Instead, it first sets aside $100 million to become a Circle shareholder.
On September 22, Circle disclosed that the two parties renewed their cooperation for five years. SEC filings show that on September 17, Binance subscribed for 1,237,011 shares of Circle Class A common stock at $80.84 per share, totaling $100 million. In principle, the related shares cannot be sold, transferred, or hedged for up to two years.
What’s even more interesting is the way the partnership is billed: Circle will pay Binance a monthly incentive fee based on the proportion of USDC held in the relevant wallet infrastructure. Binance, in turn, is responsible for promoting USDC on the platform, with a focus on emerging markets. Equity and distribution revenue are tied together.
But this still can’t be directly equated with USDC expanding its market share, nor can it be equated with a price upside. Next, the key is to verify whether USDC’s actual balances and usage on Binance are continuing to grow, and whether the added scale can offset the distribution cost.
Click <a>$USDC </a> to check real-time float and trading depth—don’t take the five-year partnership as a price signal straight away.
$USDC
On September 22, Circle disclosed that the two parties renewed their cooperation for five years. SEC filings show that on September 17, Binance subscribed for 1,237,011 shares of Circle Class A common stock at $80.84 per share, totaling $100 million. In principle, the related shares cannot be sold, transferred, or hedged for up to two years.
What’s even more interesting is the way the partnership is billed: Circle will pay Binance a monthly incentive fee based on the proportion of USDC held in the relevant wallet infrastructure. Binance, in turn, is responsible for promoting USDC on the platform, with a focus on emerging markets. Equity and distribution revenue are tied together.
But this still can’t be directly equated with USDC expanding its market share, nor can it be equated with a price upside. Next, the key is to verify whether USDC’s actual balances and usage on Binance are continuing to grow, and whether the added scale can offset the distribution cost.
Click <a>$USDC </a> to check real-time float and trading depth—don’t take the five-year partnership as a price signal straight away.
$USDC
