Binance announced a promotional campaign for its USDC simple earn flexible products, which ends on June 30, 2024.
Binance Holdings Ltd, the leading global cryptocurrency exchange by registered users and traded daily volume, has announced the launch of Circle Internet Financial Ltd’s USDC Simple Earn Flexible Products today. According to the announcement, Binance users can now begin to earn up to 8 percent in their USDC holdings.
Notably, Binance has set a subscription of a first come first served model with reward payout divided into two sections. Furthermore, Binance will only be offering a real-time annual percentage rate (APR) of approximately 4 percent.
Additionally, the cryptocurrency exchange has set a bonus tiered APR of around 4 percent to accounts with a balance of between 0.1 and 500 USDC. As for accounts with a balance of more than 500 USDC, Binance highlighted that they will only receive real-time APR of about 4 percent.
Binance has not set a limit order in the USDC Flexible Products offering, thus offering users a decent income option. The distribution of bonus tiered APRs is sent to respective users’ spot wallets daily. On the other hand, accrued real-time APR are sent to respective users’ Earn wallet every minute.
Meanwhile, the promotion period for the USDC flexible products is set to end on June 30, 2024. After the promotional period, Binance users will be entitled to real-time APR rewards.
“All users who hold open positions for USDC Flexible Products will receive both Real-Time APR and Bonus Tiered APR rewards during the Promotion Period. Once the promotion ends, users will be entitled to Real-Time APR rewards only,” Binance noted.
Market Impact of Binance’s USDC Flexible Products
The launch of Binance’s USDC Flexible Products will have a profound impact on the mass adoption of the US dollar-backed stablecoins. The notable competition between the various stablecoins will continue to escalate in the near future. For instance, Ripple Labs CEO suggested that the US SEC will be hunting down Tether’s USDT next.
However, Tether CEO Paolo Ardoino slummed Ripple, which intends to launch a US-backed stablecoin later this year, for it is already under investigation by the US SEC.
As of this writing, Circle’s USDC has a total market capitalization of about $33 billion and a 24-hour average traded volume of about $4.13 billion. In comparison, Tether’s USDT had a market value of about $110 billion and a daily average traded volume of about $20 billion.
Bigger Picture
The relationship between Binance and the United States has significantly improved since the historical settlement. Already, Binance is under a tight scope of the US regulators as part of the settlement plan. Consequently, there is a high chance that Binance will continue to attract more customers over time due its robust regulatory framework.
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