Binance, the world's leading cryptocurrency exchange, has officially partnered with Circle – the issuer of the stablecoin $USDC in the U.S. – to promote the adoption of USDC globally. This announcement was made during the Abu Dhabi Finance Week event on December 11.
Goals of the Collaboration
Both parties are committed to supporting the development of the global digital asset ecosystem and expanding financial services. Binance plans to enhance the use of USDC in trading, saving, and payment sectors on its platform. At the same time, the exchange will select USDC as the primary stablecoin in its reserves to promote the trend of asset conversion to blockchain.
Circle will provide Binance with the necessary technology and liquidity to enhance service quality.
Impact in the Market Context
This decision comes after Tether ceased issuing the EURT stablecoin due to regulatory pressure in the European Union (EU). With new regulations such as #MiCA (Cryptocurrency Market Regulatory Framework), exchanges may be forced to delist the USDT stablecoin if they do not meet transparency and audit standards.
Meanwhile, Circle has obtained a license compliant with MiCA, enabling Binance to access a stablecoin solution that fully adheres to EU regulations. This is crucial as Binance has faced legal pressures, including the cessation of issuing the BUSD stablecoin in 2023 due to investigations from U.S. authorities.
Significance for the Cryptocurrency Industry
The collaboration between #Binance and Circle not only marks a significant advancement in the strategy to transition to digital assets but also contributes to increasing the reliability of the USDC stablecoin in the global market. This is a strategic move aimed at ensuring the stability and expansion of the Binance ecosystem, especially in markets facing strict regulations.
Conclusion
With support from Circle, Binance is making a significant bet on USDC to meet both market demand and regulatory requirements. The cryptocurrency community hopes that this collaboration will bring new advancements in popularizing stablecoins and enhancing the reliability of this industry.$BTC