Binance Acquires $100 Million Stake in Circle

Binance has acquired a $100 million stake in Circle, the company behind the USDC stablecoin. The two companies have also expanded their partnership.

According to Circle, it sold approximately 1.24 million shares to Binance on September 17. Each share was priced at $80.84. Circle's market capitalization currently stands at around $24 billion.

Circle issues USDC, one of the largest stablecoins. The price of such a crypto asset is pegged to a specific currency — in this case, the US dollar. USDC's market capitalization is nearly $75 billion.

The expanded agreement between Binance and Circle covers a five-year period. Circle will pay Binance a monthly fee, while Binance will work to increase the use of USDC on its platform. Under certain conditions outlined in the agreement, either party will also be able to terminate the partnership early.

The deal further strengthens the ties between Binance and one of the largest US stablecoin issuers.

Source: Reuters