Binance buys $100 million Circle stake in five-year USDC promotion deal
Circle sold 1.24 million shares at $80.84 each and will pay Binance a monthly fee tied to USDC held through its wallet infrastructure.
- Binance bought $100 million in Circle shares through a private placement that closed Sept. 17, acquiring 1.24 million shares at $80.84 each.
- Binance generally cannot sell, transfer or hedge the shares for up to two years, though it retains voting rights.
- Under an expanded five-year partnership, Circle will pay Binance monthly incentives tied to USDC holdings, while Binance will promote the stablecoin on its platform.
Binance bought $100 million of Circle shares as the companies signed a five-year deal that pays the crypto exchange to promote the USDC stablecoin on its platform.
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 until the earlier of two years or a termination of the commercial arrangements by Binance under certain circumstances, subject to customary 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.
“Our $100 million investment and five-year commitment represent long-duration conviction,” said Richard Teng, co-CEO of Binance said in an email to CoinDesk. “We are helping to build a more inclusive, transparent, and compliant digital economy. A stable, trusted digital dollar should not be a privilege–it should be available to anyone with a phone. That's the future this partnership is designed to deliver.”
The new arrangement replaces Circle and Binance’s earlier USDC deals from November 2024 and August 2025. Either company can end the five-year partnership early if specified events occur.
The shares were sold in an unregistered private placement, which limits Binance's ability to resell them unless they are registered or an applicable exemption applies. Circle’s subsidiaries signed the related commercial agreements, and the share sale closed immediately afterward.
Commenting on Binance’s $100 million stake, Jeremy Allaire, Circle’s co-founder, chairman and CEO, said the partnership could help expand access to dollar-based financial services worldwide.
“Binance has built one of the largest and most dynamic platforms in the world for using digital currency, creating the internet’s largest financial super app, and becoming the most widely used wallet for dollar stablecoins,” Allaire said.
“Together, we see incredible opportunities to leverage USDC to expand dollar access, support savings and investment with innovative digital asset products, and reach people and businesses throughout global emerging markets,” he added.
12:17 UTC: Adds comments from Binance and Circle
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As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
Why it matters:
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
