Binance Dives Deeper into USDC with $100M Stake Purchase
Binance has taken a significant step in its partnership with Circle by purchasing $100 million worth of Circle stock and signing a new five-year commercial agreement to promote USDC on its platform.
The deal, which was filed with the SEC on September 22, involves Binance buying 1.2 million Class A shares at $80.84 per share through a private placement that closed on September 17. This purchase gives Binance a significant stake in Circle and locks them into the agreement for up to two years.
The new commercial agreement between Binance and Circle will see Circle paying Binance a monthly fee tied to how much USDC is held in its Modular Smart Contract Wallet infrastructure. In exchange, Binance will promote USDC on its platform, with an emphasis on emerging markets.
This deal marks a significant shift in the relationship between Binance and Circle, which has been marked by adversity in the past. The two companies used to be rivals, with Binance running its own dollar stablecoin, BUSD, issued through Paxos. However, their partnership has been growing since 2024, and this new deal is a major step forward.