Circle Bolsters Binance Pact, Rakes in $100M from USDC Partnership
Circle Internet Group has expanded its commercial agreement with Binance and raised $100 million in capital through a private stock sale. The five-year deal, which supersedes prior agreements from 2024 and 2025, aims to promote the use of USDC (a stablecoin pegged to the US dollar) via Circle's Modular Smart Contract Wallet.
Under the terms of the agreement, Circle will pay Binance a monthly incentive fee tied to the amount of USDC held through the wallet. In return, Binance has agreed to promote USDC on its platform. This move is expected to increase adoption and usage of USDC in the crypto market.
Circle privately sold 1,237,011 Class A shares to Binance at a price of $80.84 per share, generating $100 million in aggregate proceeds. Binance retains voting rights but has agreed to limited transfer restrictions on the subscribed shares for up to two years.