Binance Buys $100M Circle Stake in 5-Year USDC Promotion Pact

Binance has made a significant investment in Circle, purchasing $100 million of its shares. The deal includes a five-year agreement that incentivizes Binance to promote the USDC stablecoin on its platform.

The equity purchase was made through a private placement where Circle issued 1.24 million Class A shares at $80.84 each. This price represents a discount to Circle's market value prior to the sale, according to an SEC filing.

Binance cannot sell or transfer its shares for two years, but retains voting rights and is eligible for certain exceptions. The investment also expands Binance's existing partnership with Circle, which includes a monthly incentive fee based on USDC held through Circle's Modular Smart Contract Wallet service.