Circle, the US issuer of the stablecoin USD Coin (USDC), announced on the 11th that it has entered into a strategic partnership with Binance, a major cryptocurrency exchange.
Through this partnership, Binance will make USD Coin more widely available across its products and services. Specifically, it plans to increase the number of scenarios in which USD Coin can be used, such as trading pairs and various applications. In addition, Binance will adopt USD Coin as an important dollar asset in corporate finance.
Circle, in turn, will provide Binance with the technology, liquidity, and other tools necessary for users to benefit, and together they will build important relationships in the fields of global finance and commerce.
Jeremy Allaire, chairman and CEO of Circle, said, "As Binance rapidly becomes the world's leading financial super app and stablecoin adoption and utility becomes core to the financial system, we see a great opportunity for USD Coin to become widely adopted on the Binance platform."
Binance CEO Richard Teng also said, "We look forward to working closely with Circle to drive stablecoin innovation and utility globally. We believe that by working together as a team, we can significantly advance the potential of the Internet financial system."
The background to Binance's partnership with Circle seems to be issues surrounding its own stablecoin.
Last year, the company ended support for Binance USD (BUSD), which it had issued as its own branded stablecoin. This was due to the NYDFS (New York State Department of Financial Services) ordering Paxos, the issuer of Binance USD, to suspend issuance.
In response, Binance adopted FDUSD (First Digital USD), issued by FD121 Limited, a subsidiary of Hong Kong-based First Digital Limited, but it cannot be said to have been adopted as widely as the top stablecoins.
Therefore, it is possible that by adopting USD Coin, the second most stablecoin after Tether (USDT), they are aiming to improve user convenience and increase trading volume.
Reference: Announcement
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