Binance has invested $100 million in Circle to promote USDC through a new five-year agreement, enhancing their partnership.
Binance has committed $100 million to Circle through a private placement aimed at enhancing the promotion of the USDC stablecoin.
Investment Details and Conditions
The deal, finalized on September 17, involves Binance acquiring 1.24 million shares of Circle at a price of $80.84 each, which is lower than Circle's market valuation prior to the investment.
Under the terms, Binance is prohibited from selling or transferring the shares for up to two years but retains its voting rights. This agreement is part of a broader five-year contract where Circle will provide Binance with monthly incentives tied to USDC holdings, while Binance will actively promote the stablecoin on its platform.
Partnership Evolution
This new arrangement builds on prior collaborations between the two companies regarding USDC, superseding earlier agreements from November 2024 and August 2025. Either party can terminate the partnership early under certain conditions, though specifics on termination have not been disclosed.
The shares were sold via an unregistered private placement, limiting Binance's ability to resell them unless they meet specific regulatory criteria. The commercial agreements related to this share sale were executed by Circle’s subsidiaries and completed immediately after the share issuance.
