Circle has raised $100 million from Binance through a share placement, marking a significant investment and partnership expansion.
Circle Partners with Binance in Major Investment Deal
Circle has successfully completed a private placement of 1,237,011 Class A shares to Binance, raising $100 million at a price of $80.84 per share. This transaction, finalized on September 17, was disclosed in an 8-K filing.
In conjunction with this investment, Circle and Binance have entered into a five-year agreement whereby Circle will pay Binance a monthly fee tied to the volume of USDC stored in Binance's Modular Smart Contract Wallet. In exchange, Binance will promote USDC on its platform, reinforcing their collaborative efforts.
This latest agreement is the third iteration of their partnership within a span of less than two years, succeeding previous arrangements made in November 2024 and August 2025. The partnership was initially announced at Abu Dhabi Finance Week in December, where Binance committed to integrating USDC across its services and maintaining the stablecoin in its corporate treasury.
As part of the deal, Binance is prohibited from selling or hedging these shares for two years, although it maintains voting rights. Exceptions allow for transfers to affiliates and other board-approved transactions. Despite the shares being sold at a discount to Circle's market price prior to the agreement, they have appreciated in value since the purchase, closing at $94.49 on September 21, yielding Binance an unrealized gain of approximately $16.9 million.
Additionally, Circle has launched Arc, a Layer 1 network with notable validators including BlackRock, DTCC, and Visa, with USDC functioning as the gas token. Binance is set to provide access to this new network, further solidifying its role in the evolving cryptocurrency landscape.
Historically, Circle has focused on distribution partnerships to broaden USDC's reach, with Coinbase being a significant partner. The new fee agreement with Binance adds a crucial exchange to its network, enhancing its market presence.
This development comes amid reports of federal investigations into Binance regarding potential violations of U.S. sanctions against Iran, adding another layer of complexity to their ongoing operations.
