Binance Buys Circle Stake, Expands USDC Promotion Deal

Binance has expanded its commercial relationship with Circle by purchasing a $100 million stake in the company's Class A common stock. The exchange acquired 1,237,011 shares at $80.84 per share through a private placement, according to an SEC filing.

The deal comes alongside a new five-year agreement that expands Binance's promotion of USDC through Circle's Modular Smart Contract Wallet infrastructure. Under the terms of this agreement, Circle will pay Binance a monthly incentive fee based on a percentage of the USDC held through the wallet service.

Binance's shares in Circle are subject to certain restrictions, including a two-year lockup period during which it cannot sell or transfer them. However, the exchange retains voting rights on its stake throughout this time.