Binance has invested $100 million in Circle, the issuer of the USDC stablecoin, as part of a renewed five-year strategic partnership. The agreement focuses on promoting USDC globally, particularly in emerging markets. Binance will lead distribution and adoption, while Circle continues to provide the infrastructure for holding and using the stablecoin. Binance also purchased Class A Circle shares at a 5% discount to the stock’s last closing price of $94.49. CRCL shares have risen over 10% in the past five days.
Binance has invested $100 million in Circle (CRCL), the issuer of the USDC stablecoin, according to a press release by the exchange. The investment was disclosed alongside an expanded strategic partnership with a new five-year term focused on promoting USDC across Binance’s global platform, with an emphasis on emerging markets.
“Under the agreement, Binance will focus on bringing USDC to more users globally, especially in emerging markets, while Circle continues to provide the infrastructure that supports holding and using the stablecoin,” the Binance blog reads. “Together, the investment and the partnership reflect a shared, long-term commitment to expanding access to a stable, trusted digital dollar.”
Binance stated that Circle will continue to provide the infrastructure to support USDC holding and use, while Binance leads distribution and adoption. Richard Teng, co-CEO of Binance, said: “Circle has earned its place as one of the most credible issuers in the world, spanning USDC, Arc and the infrastructure reshaping how value moves across borders.”
“Our $100 million investment and five-year commitment represent long-duration conviction,” Teng added. “We are helping to build a more inclusive, transparent, and compliant digital economy.”
Jeremy Allaire, Co-founder, Chairman and CEO of Circle, commented: “Binance has built one of the largest and most dynamic platforms in the world for using digital currency, creating the internet’s largest financial super app, and becoming the most widely used wallets in the world for dollar stablecoins.” Allaire added that together the companies see opportunities to leverage USDC to expand dollar access, support savings and investment, and reach people in emerging markets.
Binance also said it bought Class A Circle shares at a 5% discount to the stock’s last closing price of $94.49. CRCL stock moved little on Tuesday, but in the past five days, shares are up over 10%.
