Binance has invested $100 million in stablecoin issuer Circle and agreed to support the spread of USDC on its platform for 5 years.
CNBC reported on Sept. 22 that the deal is a move by Circle to expand its USDC base, which is centred on the United States, overseas and to compete with Tether's USDT in the global cryptocurrency market.
Under the agreement, Binance will buy $100 million worth of Circle shares at $80.84 per share. The shares will be subject to a lock-up of up to 2 years, with some exceptions. In return, Circle will pay Binance a monthly incentive fee linked to USDC balances, and USDC will gain access to Binance's large global user base.
Circle shares rose more than 1 percent in premarket trading on Sept. 22.
Circle CEO Jeremy Allaire said he would use USDC to broaden access to dollars and expand support for saving and investing through digital asset products. Binance co-CEO Richard Teng said the cooperation would help build a more inclusive, transparent and compliant digital economy.
Circle is also pushing to expand its business beyond USDC. Last week it launched Arc Blockchain, and it is also expanding into nano payments and agent-based commerce.
Chi-kyu Hwang (황치규)
delight@d-today.co.kr