Binance Buys $100 Million Circle Stake in Five-Year USDC Deal

Binance bought $100 million of Circle shares as the companies agreed to a new five-year deal to expand the use of USDC. Circle announced the partnership on September 22, saying Binance would promote the stablecoin on its platform, especially in emerging markets.

A Circle filing with the U.S. Securities and Exchange Commission says Binance bought 1,237,011 Class A shares at $80.84 apiece. The private sale closed on September 17, and Binance agreed not to sell or transfer the shares for up to two years, subject to exceptions.

The agreement replaces earlier arrangements from 2024 and 2025. Circle will pay Binance a monthly incentive tied to the amount of USDC held through Circle’s wallet infrastructure, while Binance will take steps to promote USDC on its platform.

USDC is a digital token designed to hold a steady value against the U.S. dollar. Its market value was nearly $75 billion, Reuters reported on September 22, making it the second-largest stablecoin after Tether’s USDT.

The investment deepens a relationship that once looked very different. Binance removed support for USDC trading in late 2022 and shifted customers toward BUSD, its own dollar-linked token, before later winding down BUSD products. The companies announced a strategic partnership in 2024.

Circle shares rose nearly 2% in premarket trading on September 22, according to Reuters. The deal gives Circle access to Binance’s trading platform for USDC promotion, while Binance gains a direct stake in the issuer and monthly payments linked to USDC held through the specified wallet service.

The next measure of the partnership will be whether Binance’s promotion brings more USDC into its products and wallet service. The agreement runs for five years, but either company can end it early under specified conditions, Circle disclosed.