Binance Buys $100 Million Circle Stake in Five-Year USDC Promotion Deal
What happened
Binance purchased $100 million worth of Circle stock and signed a five-year deal to promote the USDC stablecoin on its platform. The share sale closed on Sept. 17, according to an SEC filing published Tuesday.
Circle issued Binance 1.24 million Class A shares at $80.84 each through a private placement. The price reflected a discount to Circle's market value before the sale, the company said.
Key numbers
- $100 million: total value of Circle shares bought by Binance
- 1.24 million shares: number of Class A shares issued
- $80.84: price per share
- 5 years: length of the expanded partnership
- 2 years: minimum period Binance must hold the shares before selling or transferring them
How the partnership works
Under the expanded agreement, Circle will pay Binance a monthly incentive fee calculated as a percentage of USDC held through Circle's Modular Smart Contract Wallet service. In return, Binance will carry out promotional activities for the stablecoin on its platform.
Binance generally cannot sell, transfer, or hedge the shares for up to two years, or until a termination of the commercial arrangements under certain circumstances. However, Binance retains the right to vote the shares.
The shares were sold in an unregistered private placement, which limits Binance's ability to resell them unless they are registered or an applicable exemption applies.
Replacing earlier deals
The new arrangement replaces Circle and Binance's earlier USDC agreements from November 2024 and August 2025. Either company can end the five-year partnership early if specified events occur, though the actual termination figures are not public.
Circle's subsidiaries signed the related commercial agreements, and the share sale closed immediately afterward.
What is confirmed
- Binance bought $100 million in Circle shares at $80.84 per share
- 1.24 million shares were issued in a private placement that closed Sept. 17
- The two companies signed a five-year partnership for USDC promotion
- Circle will pay Binance monthly incentives tied to USDC holdings through its wallet service
- Binance retains voting rights but faces restrictions on selling or transferring shares
What is still unclear
The specific events that would allow either company to terminate the partnership early have not been disclosed publicly. CoinDesk also reached out to Binance for a comment but has not received a response.
Sources
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