Binance Invests $100M in Circle, Extends USDC Partnership
Binance has invested $100 million in Circle Internet Group and signed a new five-year commercial agreement to promote USDC, a digital dollar stablecoin, particularly in emerging markets. The deal was announced on September 22, but actually closed on September 17.
Binance bought 1,237,011 Class A shares at $80.84 each, which is a 5% discount from Circle's closing price of $85.09 that day. Binance cannot sell or hedge these shares until the earlier of two years after closing or termination of the commercial arrangement.
Circle will pay Binance a monthly incentive fee representing a percentage of the amount of USDC held through Circle's wallet service. In return, Binance has agreed to promote USDC on its platform and integrate it more deeply into its services.
The companies see opportunities to use USDC to expand dollar access and support savings and investment with digital asset products. This deal renews an existing arrangement between the two companies that dates back to late 2024.