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Binance invests $100 million in Circle, expanding 5-year USDC partnership
Circle, the company behind the USDC stablecoin, has announced a new 5-year partnership agreement with Binance, further expanding the use of USDC within the ecosystem of this major cryptocurrency exchange.
According to the Form 8-K filed by Circle on September 22, Circle’s subsidiaries signed a new agreement with Binance on September 17. The new agreement aims to promote the use of USDC on Binance and replaces previous agreements signed by both parties in November 2024 and August 2025.
Under the new agreement, Circle will pay Binance monthly incentive fees. The fees are calculated based on a percentage of the amount of USDC held through Circle’s Modular Smart Contract Wallet infrastructure service.
Conversely, Binance will implement additional promotional activities for USDC on its platform to boost the usage of this stablecoin. This indicates that the relationship between Binance and Circle is not only focused on listing or supporting USDC trading but also aims to expand the amount of USDC used and stored within the Binance ecosystem.
Notably, also on September 17, Binance invested $100 million in Circle by purchasing 1,237,011 Class A common shares of the company.
The purchase price was discounted at $80.84 per share, equivalent to a total transaction value of approximately $100 million. The transaction has been completed.
The shares purchased by Binance will be subject to a typical 2-year transfer restriction. However, the agreement includes certain provisions that allow for early termination of the transfer restriction under specific circumstances, as well as some exceptions outlined in the agreement.
The $100 million investment comes as USDC continues to be expanded by Circle across exchanges and global financial platforms. Binance is one of the key distribution channels for USDC, as this stablecoin is used for trading, payments, and liquidity circulation in the crypto market.
