Binance takes $100 million stake in Circle in five-year USDC deal

Circle and Binance said Sept. 22 that Binance invested $100 million in Circle and signed a five-year USDC agreement to expand access in emerging markets, according to Circle’s announcement.

The deal combines an equity investment in Circle, the issuer of the USDC stablecoin, with a commercial arrangement to promote USDC on Binance’s platform. Circle said Binance will handle promotion, awareness and integration, while Circle will provide infrastructure for holding and using USDC.

Binance co-CEO Richard Teng said the investment and five-year commitment reflect the exchange’s confidence in the partnership. Circle co-founder and CEO Jeremy Allaire said the companies aim to expand access to dollar-based services and reach people and businesses in emerging markets.

How will the five-year USDC agreement work?

Binance will promote USDC globally, with particular attention to emerging markets, while Circle supplies infrastructure for the stablecoin, the companies said. The arrangement builds on earlier agreements between the two firms.

The Block reported that Circle will pay Binance a monthly incentive fee based on a percentage of USDC held through Binance’s Modular Smart Contract Wallet infrastructure. The arrangement supersedes agreements signed in 2024 and 2025, according to the report’s account of Circle’s regulatory filing.

How many Circle shares did Binance buy?

Binance purchased 1,237,011 shares of Circle’s Class A common stock for $100 million, or $80.84 per share, in a private placement, The Block reported, citing an SEC filing. Circle’s announcement said the placement price reflected a 5% discount to CRCL’s market price before closing.

Binance agreed not to transfer the shares for up to two years from closing, subject to customary exceptions, Circle said. The Block reported that the filing also gives Binance voting rights during the restriction period and allows certain exceptions if the commercial arrangement ends.

What happens next under the partnership?

Binance will expand USDC promotion and integration on its platform, while Circle will continue providing the infrastructure for holding and using the stablecoin, according to Circle. The companies said the new commercial agreement runs for five years and focuses on widening USDC access in emerging markets.

The investment closed alongside the expanded commercial agreement, The Block reported. The companies’ next steps under the agreement are to promote USDC on Binance and support its use through Circle’s infrastructure.