Binance Invests $100M in Circle via Private Placement and Extends USDC Partnership
Binance has committed $100 million to acquire a stake in stablecoin issuer Circle through a private placement of CRCL stock. The exchange purchased approximately 1.24 million Class A shares at $80.84 each, representing a 5% discount from the pre-closing price. This investment is accompanied by a new five-year agreement that expands Binance's role in promoting USDC usage among its users, particularly in emerging markets. The deal includes restrictions on selling or hedging for two years but allows voting rights for Binance as a shareholder. Circle will also pay monthly fees to Binance based on the amount of USDC stored using Circle’s Modular Smart Contract Wallet technology. This marks the third partnership between the companies since late 2024 and replaces previous agreements. The investment follows recent developments, including the launch of Circle's Arc L1 blockchain platform.
Tickers: $CRCL
Topics: Binance Circle Investment Stablecoin USDC