Binance Invests $100M in Circle to Boost USDC Adoption

Binance has made a significant investment in Circle, the issuer of the popular stablecoin USDC. The cryptocurrency exchange invested $100 million in Circle as part of an expanded five-year agreement to promote USDC on its platform.

The deal was finalized with a private placement on September 17, where Binance purchased 1,237,011 shares of Circle's Class A common stock at $80.84 per share. This price reflects a discount to Circle's market value before the transaction closed.

Under the agreement, Circle will pay Binance a monthly incentive fee based on the amount of USDC held through Circle's Modular Smart Contract Wallet infrastructure. Binance also committed to additional activities promoting USDC on its platform.