Binance Buys $100 Million Circle Stake in Five-Year USDC Deal
The exchange will promote USDC globally as Circle pays monthly incentives tied to balances held through its wallet infrastructure.
Binance has invested $100 million in Circle, the issuer of USDC, and signed a new five-year deal to promote the dollar-linked token. The companies announced the expanded partnership on September 22.
Circle sold Binance 1,237,011 shares of Class A stock for $80.84 each, according to a Circle filing with the U.S. Securities and Exchange Commission. The sale closed on September 17, at a discount to the market price.
Under the agreement, Binance will promote USDC on its platform, with a focus on emerging markets. Circle will provide infrastructure to support holding and using the token.
Circle will pay Binance a monthly incentive fee tied to the amount of USDC held through Circle’s Modular Smart Contract Wallet service. The five-year agreement replaces earlier deals signed in November 2024 and August 2025, and either company can end it early in certain circumstances.
Binance has agreed not to sell or transfer the shares for up to two years, subject to exceptions. It retains its voting rights as a shareholder.
The deal links Binance’s role as a USDC distributor to an ownership stake in Circle. The exchange stands to earn fees for promoting the token, while Circle is paying for access to Binance’s platform and users.
USDC had a market capitalization of nearly $75 billion, Reuters reported, citing CoinMarketCap data. Wider use on Binance could increase the token’s reach, but the filing does not disclose the fee rate or specify how much USDC Binance must promote.
This article was produced with the help of AI technology.
Source: Yahoo Finance
