Home / Business and Economy / Binance Buys $100M Stake in Circle, Deepens Crypto Ties
Binance Buys $100M Stake in Circle, Deepens Crypto Ties
22 Sep
Summary
- Binance invested $100 million in Circle, the issuer of USDC.
- The deal strengthens the commercial arrangement between the two entities.
- Circle's shares saw a notable increase following the announcement.
Binance recently finalized a significant investment, purchasing a $100 million stake in Circle, the issuer of the widely-used USDC stablecoin. This transaction underscores a deepening commercial relationship between the cryptocurrency exchange giant and Circle.
The deal, disclosed in a regulatory filing, involved Binance acquiring approximately 1.24 million shares of Circle at a price of $80.84 per share on September 17. This expanded arrangement is set for a five-year term, with provisions allowing for early termination under specific conditions.
As part of the agreement, Circle will provide Binance with a monthly incentive fee. Furthermore, Binance has committed to actively promoting the USDC stablecoin on its platform, aiming to increase its adoption and utility within the crypto ecosystem.
