Circle and Binance have announced a partnership to expand the global reach of USD Coin (USDC), a stablecoin with over $41 billion in assets under management.
The collaboration, unveiled during Abu Dhabi Finance Week, goes beyond merely listing USDC on the Binance exchange—where it is already available, according to a recent report from Forbes.
Instead, the partnership seeks to integrate USDC more deeply into Binance’s trading products and services, including additional USDC trading pairs and special promotions across trading platforms.
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Binance to Adopt USDC for Corporate Treasury
According to Richard Teng, Binance’s CEO, the partnership will also see Binance adopting USDC for its corporate treasury, further integrating the stablecoin into its operations.
According to Forbes, the exchange will work with Circle to strengthen relationships across the global finance and commerce sectors.
Binance, the world’s largest cryptocurrency exchange by trading volume, has faced reputational challenges since its founder Changpeng Zhao (CZ) resigned in November 2023.
This came after a settlement with the U.S. Department of Justice, in which Zhao pled guilty to violations of anti-money laundering and sanctions laws and served time in federal prison.
In addition to Zhao’s departure, Binance paid a hefty $4.3 billion fine and exited the U.S. market entirely. However, Zhao remains the exchange’s largest shareholder, holding billions of dollars in Binance’s exchange token, BNB.
For Circle, this partnership offers an opportunity to challenge the dominance of Tether (USDT), the world’s largest stablecoin, with a market cap of $138 billion.
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Although USDC and USDT were nearly on par during the 2022 crypto bear market, Circle’s momentum took a hit when it was revealed that the company held reserves at Silicon Valley Bank, an event that weakened its position.
However, by leveraging Binance’s expansive user base of 240 million, Circle hopes to narrow the gap and boost USDC adoption globally.
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Circle Plans Public Debut
The partnership comes as Circle plans for its upcoming public debut. In January, Circle confidentially filed an S-1 with the U.S. Securities and Exchange Commission, preparing for an initial public offering in 2025.
Circle’s partnership with Binance also complements its ongoing relationship with Coinbase, the largest U.S.-based crypto exchange, which holds an equity stake in Circle and shares revenue from USDC reserves.
Meanwhile, Binance continues to build its presence outside the U.S. and has made moves to improve its regulatory standing globally.
As reported, Teng has said that it is “too early” to discuss the possibility of the crypto exchange re-entering the U.S. market following its forced exit in November 2023.
“Whether we re-enter the US market, I think that’s a premature discussion,” Teng said. The statement came despite the upcoming administration of President-elect Donald Trump, which is expected to be more pro-crypto.
Meanwhile, Binance has accelerated its global expansion as of late. Earlier this year, the platform launched Binance Thailand, a joint venture in partnership with Gulf Innova, a subsidiary of Gulf Energy Development.
More recently, Indonesian crypto exchange Tokocrypto, a subsidiary of Binance, announced that it has secured a full license from the country’s Commodity Futures Trading Regulatory Agency (Bappebti).
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The post Circle and Binance Form Partnership to Boost USDC’s Global Presence appeared first on 99Bitcoins.
