Binance Invests $100 Million in Circle, Enters Five-Year Agreement to Promote USDC
On September 17, Binance invested $100 million in Circle Internet Group by purchasing shares at a price below the market rate. The investment is accompanied by a five-year commercial agreement for promoting and using Circle's stablecoin, USDC, on its platform. Under the terms of the deal, Circle will pay Binance monthly fees based on USDC balances held through Binance’s Modular Smart Contract Wallet service. This new arrangement replaces previous agreements from 2024 and 2025 with a longer-term commitment. The shares purchased by Binance are subject to a two-year lock-up period during which they cannot be sold, pledged, or hedged. Both companies expressed optimism about the partnership's potential in expanding access to digital assets through USDC, particularly in emerging markets. Circle’s stock rose nearly 2% in premarket trading following the announcement.
Tickers: $CRCL
Topics: Binance Circle crypto stablecoin USDC