Binance buys $100M of Circle stock in USDC deal
Binance invested $100 million in Circle, buying 1,237,011 Class A shares at $80.84 each in a Sept. 17 private placement and signing a five-year deal to promote USDC on Binance.
Binance invested $100 million in Circle on Sept. 17, buying 1,237,011 Class A shares at $80.84 each in a private placement, according to a U.S. Securities and Exchange Commission filing. The price reflected a discount to Circle’s market price immediately before the transaction closed. Circle’s NYSE-listed CRCL shares traded higher in premarket activity after a Monday close of $94.29 per share.
The companies signed an expanded five-year commercial agreement under which Circle will pay Binance a monthly incentive fee based on the volume of USDC held through Circle’s Modular Smart Contract Wallet infrastructure. Binance agreed to undertake additional promotional activities for USDC on its exchange. Either party can terminate the agreement early under specified conditions.
Binance agreed not to sell, transfer, assign, pledge or hypothecate the Circle shares for up to two years. The lockup may end sooner if Binance terminates the commercial agreement in certain cases. Binance retains voting rights for the shares during the restriction period.
The investment replaces earlier arrangements between the companies from November 2024 and August 2025. The SEC filing details the mechanics of the private placement and the restrictions attached to the shares.
USDC is a dollar-pegged stablecoin issued by Circle. Circle’s Modular Smart Contract Wallet is designed to manage and custody USDC and other on-chain assets; the fee structure ties Binance’s compensation to the amount of USDC held through that wallet.
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