usdtvsusdc

USDC vs. USDT: Binance shakes up the market with $100 million

Binance invests $100 million in Circle and gives USDC a serious boost. The exchange has acquired 1,237 million shares of the stablecoin issuer at $80.84 each, while signing a new commercial agreement for five years. The goal is to further promote USDC on Binance, especially in emerging markets where Tether maintains a considerable advantage with USDT.

Binance invests $100 million directly in Circle.

The commercial agreement around USDC is renewed for five years.

Tether maintains a clear advantage with around $183 billion worth of USDT in circulation, compared to about $75 billion for USDC.

Binance is directly interested in USDC’s growth

The deal goes far beyond a financial investment. Binance now has a stake in Circle and has agreed to promote more USDC among its users. Circle, for its part, will pay the exchange each month a fee calculated based on the USDC held through its custody infrastructure.

In other words, the more USDC is used in the Binance ecosystem, the more benefits both companies can reap.

The relationship had already started to show results. Circle still depends largely on its stablecoin, which accounted for most of its revenue in the second quarter. The company generated $701 million in revenue then, driven by the expansion of USDC.

This time, Binance goes even further. 1,237,011 shares were acquired in a private placement that closed on September 17. The exchange generally will not be able to sell, transfer, or hedge them for a period of up to two years. However, it retains its voting rights. Richard Teng talks about long-term conviction. The commercial agreement itself is valid until 2031.

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