Binance puts 100 million dollars on Circle and gives a serious boost to USDC. The exchange acquired 1.237 million shares of the stablecoin issuer at 80.84 dollars each, while signing a new fi
Binance puts 100 million dollars on Circle and gives a serious boost to USDC. The exchange acquired 1.237 million shares of the stablecoin issuer at 80.84 dollars each, while signing a new five-year business agreement. The goal is to further push USDC on Binance, especially in emerging markets where Tether maintains a considerable lead with USDT.
The operation goes far beyond a financial investment. Binance now owns a stake in Circle and has agreed to further promote USDC to its users. Circle, on its side, will pay the exchange a commission each month calculated based on the USDC held through its wallet infrastructure.
In other words, the more the use of USDC grows within the Binance ecosystem, the more both companies can benefit from it.
The relationship had already begun to yield results. Circle still largely relies on its stablecoin, which represented most of its revenue in the second quarter. The company had then generated 701 million dollars in revenue, driven by the expansion of USDC.
This time, Binance goes even further. The 1,237,011 shares were acquired during a private placement closed on September 17. The exchange generally cannot sell, transfer, or hedge them for up to two years. However, it retains its voting rights. Richard Teng talks about a long-term conviction. The business agreement itself runs until 2031.
Your 1st cryptos with BinanceThis link uses an affiliate program.The balance of power remains largely in favor of Tether. USDT weighs around 183 billion dollars in circulation, compared to about 75 billion for USDC. Tether’s stablecoin remains especially dominant in international markets, where users use the digital dollar for trading, payments, or simply to store a dollar-denominated value.
Circle, however, has another advantage: transactional activity. An analysis by Mizuho published earlier this year already showed that USDC surpassed USDT in adjusted transaction volume. At the time, around 2,200 billion dollars had passed through USDC since the beginning of the year, compared to 1,300 billion for USDT.
Binance can now provide what Circle still lacks in several regions: massive distribution. The exchange notably wants to further integrate USDC into its saving and investment products and use incentives such as reduced fees on certain USDC-denominated pairs. The agreement explicitly targets emerging markets, precisely one of the grounds where Tether has built its strength.
One hundred million dollars will obviously not be enough to overthrow Tether. USDT still has more than double the capitalization of USDC. Its historical presence on exchanges, in international transfers, and on networks like Tron gives it liquidity that’s hard to quickly replicate.
Tether recently claimed more than 30 million new wallets per quarter. The group also asserts that a large share of USDT use now lies outside simple crypto trading. Circle is therefore not entering an empty market. The interest of the agreement with Binance is mainly in its duration.
Five years of promotion, a direct 100 million dollar stake, and commissions linked to USDC balances create a much stronger relationship than a simple listing. A few years ago, Binance pushed its own BUSD. Today, it holds a stake in Circle and directly participates in the distribution of its main stablecoin. Tether remains ahead. Circle has mainly just gained an ally that counts.
