Binance Drops $100M on Circle, Expands USDC Distribution

Binance has made a significant investment in Circle, pouring $100 million into the company. The exchange also signed a five-year agreement to expand USD Coin (USDC) distribution, solidifying its ties with the stablecoin issuer.

The deal includes Binance's purchase of 1,237,011 Circle Class A common shares at $80.84 each, representing a 5% discount to Circle's market price before closing. The shares come with voting rights and some transfer restrictions lasting up to two years in most cases.

Circle will pay Binance monthly incentives based on the amount of USDC held through its modular smart-contract wallet infrastructure. The payment rate remains undisclosed, but Binance has committed to promoting USDC on its platform.