Binance buys $100M Circle stake in five-year USDC deal

Binance has purchased a $100 million equity stake in Circle Internet Group ↘ 3.03%, the company behind the USDC USD Coin stablecoin, while the two firms signed a five-year commercial agreement to expand promotion of the digital dollar across emerging markets.

Circle issued 1,237,011 Class A common shares to Binance at $80.84 each in a private placement that closed on September 17, according to an 8-K filing with the Securities and Exchange Commission published Tuesday. The purchase price reflected a roughly 14% discount to Circle's Monday closing price of $94.29.theblock+4

"Our $100 million investment and five-year commitment represent long-duration conviction," said Richard Teng, co-CEO of Binance, in a joint press release. "A stable, trusted digital dollar should not be a privilege — it should be available to anyone with a phone."circle

The Commercial Agreement

Under the new arrangement, Circle will pay Binance a monthly incentive fee calculated as a percentage of USDC held through Circle's Modular Smart Contract Wallet infrastructure, while Binance will promote the stablecoin on its platform. The deal supersedes earlier agreements the companies signed in November 2024 and August 2025. Either party can terminate early under specified conditions, though the threshold figures have not been publicly disclosed.coindesk+2

Binance cannot sell, transfer, or hedge the shares for up to two years, though it retains voting rights during the lockup period.theblock+1

Distribution Economics Under Scrutiny

Paying exchanges to push USDC is not new for Circle. The company already shares stablecoin economics with Coinbase ↘ 1.46% under a separate agreement renewed in August through 2029. Circle disclosed in earlier filings that its November 2024 deal with Binance included a $60.3 million upfront payment plus monthly incentive fees.crypto

Circle reported $701 million in second-quarter revenue and $73.3 billion of USDC in circulation at the end of that period, up 19% year over year. The company carries a market capitalization near $25.8 billion.beincrypto+1

Broader Context

The deal arrives as Circle expands beyond the stablecoin itself. Last week the company launched the public mainnet of Arc, its Layer 1 blockchain, with a founding validator group that includes BlackRock ↘ 0.54%, Mastercard ↗ 0.73%, and Visa ↘ 0.14%. Circle shares rose in premarket trading Tuesday following the announcement.reuters+2

Jeremy Allaire, Circle's co-founder and CEO, framed the partnership around financial access: "Together, we see incredible opportunities to leverage USDC to expand dollar access, support savings and investment with innovative digital asset products, and reach people and businesses throughout global emerging markets."circle