Binance buys $100 million Circle stake in five-year USDC promotion deal
- Binance bought $100 million in Circle shares through a private placement that closed Sept. 17, acquiring 1.24 million shares at $80.84 each.
- Binance generally cannot sell, transfer or hedge the shares for up to two years, though it retains voting rights.
- Under an expanded five-year partnership, Circle will pay Binance monthly incentives tied to USDC holdings, while Binance will promote the stablecoin on its platform.
Binance bought $100 million of Circle shares as the companies signed a five-year deal that pays the crypto exchange to promote the USDC stablecoin on its platform.
Circle issued Binance 1.24 million Class A shares at $80.84 each in a private placement that closed Sept. 17, according to an SEC filing published Tuesday. The price reflected a discount to Circle’s market value before the sale, the company said.
Binance cannot sell, transfer or hedge the shares until the earlier of two years or a termination of the commercial arrangements by Binance under certain circumstances, subject to customary exceptions, but retains the right to vote them.
The equity purchase closed alongside an expansion of the companies’ existing USDC partnership. Circle agreed to pay Binance a monthly incentive fee calculated as a percentage of the USDC held through Circle’s Modular Smart Contract Wallet service, while Binance will carry out promotional activities for the stablecoin.
CoinDesk reached out to Binance for a comment on the matter.
The new arrangement replaces Circle and Binance’s earlier USDC deals from November 2024 and August 2025. Either company can end the five-year partnership early if specified events occur. (the actual termination figures aren’t public)
The shares were sold in an unregistered private placement, which limits Binance's ability to resell them unless they are registered or an applicable exemption applies. Circle’s subsidiaries signed the related commercial agreements, and the share sale closed immediately afterward.