Binance Invests $100 Million in Circle, Agrees to Promote USDC
Binance has taken a significant stake in Circle, purchasing $100 million's worth of its Class A shares through a private placement. This move comes after Binance agreed to promote USDC, Circle's stablecoin, on its exchange over the next five years.
The deal was made through an SEC filing that revealed Binance received 1,237,011 of Circle's Class A shares at $80.84 each. Although this is a significant investment, the shares are locked up for two years, meaning Binance cannot sell or transfer them during this time.
The arrangement between Binance and Circle also includes a promotion agreement where Circle will pay Binance a monthly fee based on a percentage of the USDC balance held through Binance's Modular Smart Contract Wallet service. This deal is set to run for five years, with either company able to walk away early if certain conditions are met.