Binance Invests $100M in Circle, Signs Five-Year USDC Pact

Binance has invested $100 million in Circle Internet Group and signed a five-year agreement to promote USDC, the second-largest dollar stablecoin.

The deal pairs an equity investment with a commercial pact. Binance acquired 1,237,011 Class A shares at $80.84 each, a roughly 5% discount to the market price before closing.

The arrangement includes a recurring monthly incentive fee tied to the volume of USDC held through Circle's wallet infrastructure, which makes the deal a distribution cost for Circle as much as a show of confidence from Binance.

Circle will pay Binance this fee, calculated as a percentage of USDC balances held through Circle's Modular Smart Contract Wallet service. This economics runs counter to the public framing, which leads with Binance's investment and its pledge to promote USDC.