- Binance and Circle have announced a push to use Circle’s USDC stablecoin on the platform
- The exchange appears desirous of seeing the regulated stablecoin displace Tether as its primary stablecoin
- The move is clearly designed to appease regulators
Binance and Circle yesterday announced that they will join forces to boost the adoption of Circle’s USDC stablecoin, two years after the exchange pulled all USDC trading pairs. The partnership was announced at the Abu Dhabi Finance Week, where the stated aim was to “support the development of the global digital assets and broader financial services ecosystem.” In 2022, Circle boss Jeremy Allaire was forced to clarify that Binance was not ditching USDC, but incoming regulations have allowed the stablecoin to rise to prominence.
“Powerful Signal” of Onchain Future
Binance and Circle have not offered a great deal of clarification over the partnership except to say that it represents “a powerful signal about the world moving on-chain.” Binance plans to extend the availability of USDC for trading, saving, and payment applications on its platform, while Circle will provide Binance with the technology and liquidity necessary to improve its services.
Few other materials have been published regarding the collaboration, leaving the real-world impact of the partnership somewhat uncertain, although Allaire did post about the deal on X:
…Binance will adopt USDC as a vital dollar stablecoin for their own corporate treasury, demonstrating that one of the most sophisticated onchain treasury operations is putting their full faith behind USDC as a digital dollar for storing and moving value.
Through our collaboration, Circle will provide Binance with a range of technology, liquidity and other tools for Binance users to benefit from the trust and innovation that Circle has built for USDC.
Allaire added that Circle and Binance will work on “products and partnerships that advance the use of stablecoins and crypto infrastructure in everyday finance and commerce all around the world.”
Binance Comes Full Circle
Such a partnership would not have been predicted in 2022 when Binance forced holders of USDC, TrueUSD (TUSD), and Pax Dollar (USDP) to convert to its BUSD stablecoin. In addition, all USDC pairs were pulled from the exchange, prompting Allaire to deny accusations that the exchange had ditched USDC.
The tide began to turn in 2023 when BUSD was the target of US action, leading to Binance shuttering it. This left Binance needing to trust existing stablecoins, a situation which has coincided with the imminent implementation of the Markets in Crypto Assets (MiCA) regulations, which prohibit the use of stablecoins that can’t prove their backing.
The regulations, due to come into effect in two weeks’ time, have led to a resurgence in trust and usage of the fully regulated USDC, with Binance shifting its $1 Billion SAFU Fund to USDC as a result.
