Binance, the world’s largest cryptocurrency exchange, has signed a new partnership agreement. Accordingly, Binance acquired $100 million worth of Circle shares through a private placement and
Binance, the world’s largest cryptocurrency exchange, has signed a new partnership agreement. Accordingly, Binance acquired $100 million worth of Circle shares through a private placement and signed a 5-year USDC partnership agreement.
According to a filing with the U.S. Securities and Exchange Commission (SEC) and an official statement, Binance acquired a $100 million stake in USDC issuer Circle through a private placement and signed a five-year partnership agreement.
“…The companies signed a new five-year commercial agreement focused on expanding USDC access in emerging markets. Additionally, Binance made a $100 million strategic equity investment in Circle.”
Under the new agreement, Binance will accelerate the promotion, awareness, and integration of USDC on its platform, particularly in emerging markets; while Circle will provide the infrastructure services supporting the holding and use of USDC.
Circle has issued 1.24 million Class A common shares to Binance. According to the announcement, Binance’s equity investment in Circle was realized through a private placement of Class A common shares at a purchase price reflecting a five percent discount to CRCL’s pre-closing market price.
Binance will be unable to sell its shares for up to two years, but will retain voting rights and receive monthly incentive fees from Circle based on the amount of USDC held in Binance wallets.
Jeremy Allaire, Co-Founder and CEO of Circle, said, “Binance has created the internet’s largest financial superapp by building one of the world’s largest and most dynamic platforms for the use of digital currencies, and has become the world’s most widely used wallet for dollar stablecoins. Together, we see incredible opportunities to expand access to the dollar using USDC, support saving and investing with innovative digital asset products, and reach people and businesses in emerging markets globally.”
Binance Co-CEO Richard Teng said, “Circle has solidified its position as one of the world’s most trusted issuers, encompassing USDC, Arc, and the infrastructure reshaping cross-border value transfer. Our $100 million investment and five-year commitment represent a long-term belief. We are helping to build a more inclusive, transparent, and harmonious digital economy. A stable, reliable digital dollar shouldn’t be a privilege; it should be accessible to anyone with a phone. That’s the future this partnership is designed to deliver.”
*This is not investment advice.
Continue Reading: Binance Makes a $100 Million Move That Will Shake Up the Cryptocurrency Market: Partnership Established with a US Giant!
