Binance Invests $100M in Circle as Part of Five-Year USDC Promotion Agreement
Binance has invested $100 million in stablecoin issuer Circle through a private placement, acquiring over 1.237 million Class A shares at $80.84 each. The investment coincided with an expanded commercial agreement under which Binance will promote USDC on its platform and receive monthly incentive fees based on the amount of USDC held via its Modular Smart Contract Wallet service. The five-year deal replaces previous agreements from November 2024 and August 2025, marking a deepening partnership between the two firms. The transaction closed September 17, with Binance agreeing not to sell or transfer shares for at least two years unless certain conditions are met. Circle’s stock price rose slightly after the deal but remains down over 34% year-to-date. The investment follows closely on the launch of Arc, a new Layer 1 blockchain backed by BlackRock and Visa with USDC as its gas token.
Tickers: $CRCL