Technology
Binance buys $100 million stake in Circle
The Economic Times··3d ago
Circle said Tuesday that Binance bought a $100 million stake in the USDC issuer. A regulatory filing showed about 1.24 million shares sold on September 17 at $80.84 each. The expanded commercial arrangement runs five years and includes a monthly incentive fee paid to Binance. Circle shares were up nearly 2 percent in premarket trading.
Prism
What It Means For You
- Binance's stake deepens its commercial link to USDC, a dollar-pegged stablecoin used across crypto markets.
- Circle will pay Binance a monthly incentive fee under the expanded arrangement.
- Either side can end the five-year commercial deal early under specified conditions.
What's Happening
- Circle said Binance purchased a $100 million stake.
- About 1.24 million shares were issued and sold on September 17 at $80.84 each.
- Circle shares were up nearly 2 percent in premarket trading after the disclosure.
What Circle and USDC Represent
- USDC has a market capitalization of nearly $75 billion on CoinMarketCap data cited in the report.
- Circle's market cap is about $24 billion after shares rose roughly 19 percent this year.
- Stablecoins are designed to hold a stable value, typically pegged to the US dollar.
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