USDC Alliance: Binance, Coinbase, and Circle Take on Tether

Sahana Kiran
Binance
Source – Binance

The cryptocurrency market has an array of firms operating under one wing. While the industry has seen several rivalries among firms unravel in the past, Binance and Coinbase seem to be teaming up on a new quest. According to recent information, Binance has partnered with the stablecoin network Circle to boost the adoption of USDC. It should be noted that Circle is not the only firm behind the stablecoin. Coinbase is also part of the network.

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Binance Dives Into The Stablecoin World (Again)

Binance Logo BUSD
Source – Binance

During the ongoing Abu Dhabi Finance Week, Binance revealed its latest collaboration with Circle. Through this partnership, more than 240 million clients will have access to Circle’s USDC for trading, savings, and payments. In addition, Binance will also use USDC as “a vital dollar stablecoin” for its corporate treasury. Binance CEO Richard Teng said,

“Through our strategic partnership, our users will have even more opportunities to use USDC on our platform, including more USDC trading pairs, special promotions on USDC across trading, and other products on Binance.”

It is worth noting that this isn’t the first time that Binance is exploring stablecoin waters. The firm had previously harbored BUSD, a stablecoin with a $23 billion market capitalization. However, in late 2023, it was forced to shut down BUSD due to heightened regulatory attention over reported non-compliance.

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Circle regularly denounced Tether and Binance as wildcat companies at this time. But the tables have clearly turned. Elaborating on the same, Kash Razzaghi, Circle’s chief business officer, added,

“Binance has undergone a deep transformation of its business, and over time, we mutually agreed that it made sense to pair one of the world’s most trusted and regulated stablecoins, USDC, with the world’s largest cryptocurrency exchange to prioritize the safety and security of their customers’ assets as the company focuses on improving its regulatory scorecard.”

A Look Into The USDC Market

usdc price chart
Source – CoinMarketCap

Circle’s USDC currently stands as the eighth-largest cryptocurrency in the market. With a market cap of $40.86 billion, USDC is the second-largest stablecoin. The daily trading volume of the asset at press time was $14.71 billion after a 21% drop.

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