Binance buys $100 million Circle stake in five-year USDC promotion deal
Binance has acquired a $100 million stake in Circle through a private placement of 1.24 million Class A shares. The deal includes a five-year partnership where Binance will promote the USDC stablecoin in exchange for monthly incentive fees based on wallet usage.
Why it matters
This strategic investment signals a deepening integration between the world's largest crypto exchange and a major stablecoin issuer, potentially boosting USDC's market share and liquidity in the competitive stablecoin landscape.
Circle issued Binance 1.24 million Class A shares at $80.84 each in a private placement that closed Sept. 17, according to an SEC filing published Tuesday . The price reflected a discount to Circle’s market value before the sale, the company said.
Binance cannot sell, transfer or hedge the shares for as long as two years, subject to certain exceptions, but retains the right to vote them.
The equity purchase closed alongside an expansion of the companies’ existing USDC partnership. Circle agreed to pay Binance a monthly incentive fee calculated as a percentage of the USDC held through Circle’s Modular Smart Contract Wallet service, while Binance will carry out promotional activities for the stablecoin.
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