Binance Invests in Circle for Five-Year Stablecoin Push

Binance has purchased $100 million worth of Circle stock under a five-year agreement that requires the exchange to promote the USDC stablecoin.

The deal, which was filed with the US Securities and Exchange Commission on September 22, involves Binance buying 1,237,011 Class A shares at $80.84 each in a private placement that closed on September 17.

Circle will pay Binance a monthly fee based on the percentage of USDC held through its Modular Smart Contract Wallet service while Binance carries out promotional activities for the stablecoin.

The arrangement supersedes previous agreements between the two companies and includes a lockup period during which Binance cannot sell, transfer, pledge or hedge the shares, subject to certain exceptions.