Binance has announced a $100 million investment in Circle Internet Group, along with the renewal of a five-year strategic partnership aimed at expanding the use of digital coin USDC worldwide, particularly in emerging markets.
Under the $100 million financing agreement with Circle Internet Group, Binance will promote USDC, a US dollar-pegged stablecoin, across its global platform.
Circle, for its part, will provide the infrastructure required to hold and use the digital currency.
The investment involves Binance acquiring $100 million worth of Circle’s Class A common stock through a private placement at a price 5% below the CRCL share price prior to the transaction’s closing.
“Our $100 million investment and five-year commitment demonstrate our long-term conviction,” Binance co-CEO Richard Teng said, according to the statement.
He said the partnership would contribute to the development of a more inclusive digital economy and broaden access to digital financial services.
Circle co-founder, chairman and CEO Jeremy Allaire highlighted the opportunities created by the collaboration to expand access to digital dollars, support savings and investment, and develop products based on digital assets.
The agreement comes as Binance and Circle seek to expand USDC adoption among individuals and businesses, particularly in emerging markets.
Circle is the issuer of USDC, a stablecoin designed to maintain a stable value relative to the US dollar.
Binance, meanwhile, operates a global platform offering services related to digital assets.
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