PolicyBinance Invests $100 Million in Circle for USDC Promotion

Circle issued 1.24 million shares at $80.84 each, with Binance receiving monthly payments based on USDC held through its wallet system.

By Shaurya Malwa, Omkar GodboleUpdated 16 minutes agoPublished 53 minutes ago1 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Binance founder Changpeng Zhao (Nikhilesh De/CoinDesk)SummaryShow
  • Binance acquired $100 million worth of Circle shares in a private placement that closed on September 17, obtaining 1.24 million shares at $80.84 each.
  • For up to two years, Binance is restricted from selling, transferring, or hedging these shares, although it retains voting rights.
  • As part of a new five-year agreement, Circle will provide Binance with monthly incentives based on USDC holdings, while Binance will promote the stablecoin on its platform.

Binance has made a $100 million investment in Circle as part of a five-year agreement that compensates the exchange for promoting the USDC stablecoin.

In a private placement that concluded on September 17, Circle issued 1.24 million Class A shares to Binance at a price of $80.84 per share, which was below Circle’s market valuation prior to the transaction, according to a SEC filing released on Tuesday.

Binance is restricted from selling, transferring, or hedging the shares for a period of up to two years, unless certain conditions lead to the termination of the commercial arrangements, but it will maintain voting rights over the shares.

This purchase coincides with an enhancement of the existing partnership between the two companies regarding USDC. Circle will pay Binance a monthly incentive fee based on a percentage of USDC held through Circle’s Modular Smart Contract Wallet service, while Binance will conduct promotional efforts for the stablecoin.

CoinDesk has reached out to Binance for further comments on this deal.

This new agreement supersedes previous USDC arrangements between Circle and Binance from November 2024 and August 2025. The partnership can be terminated early by either party under specified conditions, though the exact details regarding termination have not been disclosed.

The shares were sold through an unregistered private placement, which restricts Binance's ability to resell them unless they are registered or qualify for an exemption. Related commercial agreements were signed by Circle’s subsidiaries, and the share sale was completed immediately after.

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