stable coins
By Sakamoto Nashi
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The Five-Year Commercial Tie-Up. The equity deal didn't come alone. Binance and Circle also signed a five-year commercial agreement…
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Circle's Stock: Volatility, Recovery, and the CLARITY Act. Circle's stock had a rough patch right before this deal closed.
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USDC's Position and What the Deal Means for Distribution Costs. USDC is the sixth-largest crypto asset right now. Market cap: $74.6 billion. It's trading at $0.
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Binance just bought into Circle. The world's largest crypto exchange acquired $100 million worth of Circle Internet Group stock, per a recent SEC filing, picking up 1,237,011…
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The deal wasn't done on any open market. It was a private sale, exempt from SEC registration.
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Circle will pay Binance a monthly incentive fee based on how much USDC sits in that wallet system. The exact percentage? Undisclosed. So we know the structure, but not the rate.
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The five-year runway is long by crypto standards. It basically locks both companies into a shared interest in growing USDC balances inside that wallet infrastructure.
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Circle's stock had a rough patch right before this deal closed. The CLARITY Act — legislation that would have clarified which U.S.
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But the stock bounced back. It closed at $94.49 on Monday and was trading at $95.76 in pre-market Tuesday. Over the past quarter, Circle's stock climbed 18.
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Related: US Attorneys Office Investigates Binance for Possible Iran Sanctions Violations
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Circle's market cap is close to $25.8 billion. It trades at about 19 times earnings. Quarterly revenue came in at $701.3 million, and the trailing twelve-month figure is $2.
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That gap — Binance's entry price versus the open market price — is actually a new data point for investors trying to figure out how outside parties value Circle.
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USDC is the sixth-largest crypto asset right now. Market cap: $74.6 billion. It's trading at $0.9998 — basically at its dollar peg, which is kind of the whole point.
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Distribution costs are a big deal in stablecoin economics. Circle's earlier arrangement with Coinbase — which played a role in Circle's entry into the wrapped Bitcoin market…
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The Binance deal probably follows similar logic. Binance gets a monthly fee tied to USDC balances. Circle gets one of the world's biggest crypto platforms pushing its stablecoin.
The Currency Analytics
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