Binance will provide more USDC on its platform, while Circle will provide liquidity and technology and help Binance build new relationships.
On December 11, at the Abu Dhabi Finance Week event, the world's largest cryptocurrency exchange Binance and the USDC stablecoin issuer Circle officially announced a strategic partnership.
According to the announcement, Binance will further integrate the USDC stablecoin into its products and services. This means that Binance's over 240 million global users will be able to use USDC for all their trading and payment activities. In addition, this "giant" has also announced that it will make USDC a reserve asset in its treasury in the near future.
"Binance believes that stablecoins have important use cases in the broader financial ecosystem - from using USD-pegged stablecoins to hedge against inflation in developing countries, to more efficient and lower-cost money transfer tools, to ways to buy and sell other cryptocurrencies."
Binance spokesperson
On the Circle side, the company will provide technology, liquidity, and other supporting tools to ensure Binance users benefit from the transparency and innovation that USDC brings. In addition, Circle also emphasized that it will help Binance build relationships in the global finance and commerce space.
Circle CEO Jeremy Allaire said "The adoption and integration of stablecoins is core to the future financial system."
USDC is currently the second largest stablecoin on the market with a capitalization of up to $40 billion, only behind USDT. The growth of USDC has also contributed significantly to the total stablecoin market capitalization exceeding $200 billion, setting a new ATH record.
Previously, Binance had faced many challenges related to the BUSD stablecoin, from legal issues to delisting on the market. Recently, the change in strategy related to TUSD has also caused a lot of controversy. In this context, the partnership with Circle and the choice of USDC as the priority stablecoin shows that Binance is moving towards a more stable, compliant, and safer solution.
Stablecoin market statistics. Source: defillama (12/11/2024)
In addition to the strategic partnership with Binance, Circle is also collaborating with traditional financial institutions such as LuLu Financial Holdings in Abu Dhabi to develop cross-border money transfer and payment services using USDC.
LuLu Financial manages over $10 billion in annual transactions, operating in Gulf Cooperation Council member countries, the Indian subcontinent, and the Asia-Pacific region.
VIC Crypto summary
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