Mentioned:
Circle has a new shareholder: Binance.
What’s happening:
- Binance has made a strategic investment of $100M USD in Circle (NYSE: CRCL)
By the numbers:
- Binance purchased roughly 1.2M common shares of Circle at $80.84 each
Why it matters:
- Binance’s equity investment is directly tied to a new five-year commercial deal in which Circle pays Binance a monthly fee that is equal to a percentage of the USDC held through Circle’s wallet service in exchange for Binance promoting USDC
Going deeper:
- Binance will promote USDC across their exchange and trading platform as part of the new commercial deal with Circle
- More than 300 million users are currently registered on Binance across over 100 different countries
- Binance can not sell or hedge their equity position in Circle for two years unless their partnership with Circle is ended early
The intrigue:
- Circle just recently made waves when they entered into a deal to acquire Singapore based cross-border payments company Tazapay for $400M USD In stock
