From CNBC · Tanaya Macheel · · 1m 30s
Binance backs Circle's global stablecoin push
Binance invests $100 million in Circle to expand USDC internationally and challenge Tether's dominance in crypto markets.
In brief
Binance invests $100 million in Circle to expand USDC internationally and challenge Tether's dominance in crypto markets. Binance is investing one hundred million dollars in stablecoin issuer Circle under a five-year deal to promote USDC globally and compete with Tether. Originally reported by CNBC.
Binance backs Circle with $100m
Binance is investing one hundred million dollars in stablecoin issuer Circle as part of a five-year deal to promote Circle's USDC on its platform.
Deal terms and share purchase
Binance agreed to buy one hundred million dollars of Circle shares at eighty dollars and eighty-four cents each, subject to a lockup of as long as two years.
How the partnership works
Circle gains access to Binance's large global user base in exchange for paying Binance a monthly incentive fee tied to USDC balances. Shares of Circle rose more than one percent in premarket trading Tuesday.
Circle's global expansion strategy
Circle is pushing to expand USDC beyond its historically U.S.-focused base and compete more directly with stablecoin giant Tether in international crypto markets.
The stablecoin competition
USDT remains larger with roughly one hundred eighty-three billion dollars in circulation versus about seventy-five billion dollars for USDC. USDT has strong international trading presence while USDC pitches regulated markets and transparency.
The stakes for both stablecoins
The fight between USDC and Tether is ultimately a battle over which becomes the default for global crypto trading, payments and finance.
The bottom line
Binance is investing one hundred million dollars in stablecoin issuer Circle under a five-year deal to promote USDC globally and compete with Tether.
