Binance Invests $100M in Circle, Expands USDC Partnership

Binance has invested $100 million in Circle, the issuer of the USDC stablecoin, as part of a new five-year commercial agreement. The investment gives Binance an equity stake in Circle and will be used to promote USDC on its global platform.

The deal was completed through a private placement of Circle's Class A common stock, with Binance purchasing 1,237,011 shares at $80.84 per share. This transaction represents a five percent discount to Circle's market price before the close of the deal.

The new agreement replaces previous agreements between the two companies and includes a financial arrangement tied to USDC activity. Circle will pay Binance a monthly incentive fee based on the amount of USDC held through infrastructure connected to its Modular Smart Contract Wallet services.