Binance Invests $100 Million in Circle, Commits to Promoting USDC for Five Years

Binance has invested $100 million in Circle Internet Group, the issuer of the USDC stablecoin. At the same time, the two sides signed a new five-year commercial agreement calling for more active promotion and integration of USDC on Binance’s global platform.

The deal closed on September 17. According to Circle’s SEC filings, Binance bought 1,237,011 Class A shares at $80.84 each through a private placement. The total investment came to exactly $100 million.

Circle notes that the shares were sold at roughly a 5% discount to the market price of CRCL before the deal closed.

Binance Can’t Sell the Shares for Two Years

The investment comes with restrictions on how the acquired stake can be used.

Binance has agreed not to sell, transfer, pledge or hedge the Circle shares for up to two years. The restriction may end sooner under certain scenarios for terminating the commercial agreement.

Standard exceptions also apply – for example, transfers of securities between Binance affiliates, certain corporate transactions, and transactions required by law.

At the same time, Binance retains ordinary shareholder rights, including the right to vote its shares.

The companies officially announced the investment and the expanded partnership on September 22.

Circle Will Pay Binance Monthly to Promote USDC

The share purchase was only part of a broader arrangement.

The new five-year agreement replaces Circle and Binance’s previous contracts from November 2024 and August 2025. Binance is to promote USDC more actively on its platform, especially in emerging markets, while Circle will continue to provide infrastructure for holding and using the stablecoin.

In addition, Circle will pay Binance a monthly incentive fee. Its size is calculated as a percentage of the volume of USDC held through the Circle Modular Smart Contract Wallet infrastructure.

The companies did not publicly disclose the percentage itself.

Both sides can terminate the five-year agreement early under certain conditions.

Binance says the partnership should make USDC more accessible to users around the world, especially in emerging markets.

Binance Now Has a Stake in Circle’s and USDC’s Growth

As a result of the deal, the relationship between the two companies is becoming noticeably closer.

Binance now not only earns a fee for distributing USDC but also becomes a Circle shareholder, giving it a direct stake in the issuer’s financial results.

For Circle, the partnership opens up additional access to Binance’s huge audience and its trading and wallet infrastructure. For Binance, the investment creates a financial incentive to spread USDC further.

That is especially notable amid competition among dollar stablecoins. The new arrangement is not just a $100 million investment but a five-year distribution deal under which Binance will expand USDC’s presence while Circle pays it for the volume of use of its infrastructure.