Binance backs Circle with $100m

Binance announced a one hundred million dollar investment in Circle, the issuer of USDC stablecoin, as part of a new five-year partnership to expand the token's global reach.

How the deal works

Binance purchased ordinary shares in Circle at a five percent discount and agreed not to sell or transfer them for up to two years. Circle will supply technology while Binance expands USDC adoption in developing markets.

What the leaders say

Circle CEO Jeremy Allaire said the companies see opportunities to leverage USDC to expand dollar access. Binance co-CEO Richard Teng called the investment a reflection of the exchange's long-duration conviction in Circle.

“Together, we see incredible opportunities to leverage USDC to expand dollar access.”

USDC's market position

Circle's USDC token has a market capitalization of nearly seventy six billion dollars, making it the second-largest stablecoin after Tether's USDT, which has a market cap of roughly one hundred eighty three billion dollars.

From rivals to partners

In late two thousand twenty-two, Binance cut off USDC support and converted customers' balances to its own BUSD stablecoin. After regulators shut down BUSD in two thousand twenty-three, Binance and Circle announced a strategic partnership roughly a year later.

Stablecoins' rapid growth

Stablecoins have grown rapidly over the last two years following a more favorable regulatory climate. After the passage in two thousand twenty-five of the Genius Act, the sector's combined value climbed above three hundred six billion dollars.