Binance buys $100 million stake in Circle, expands USDC promotion deal

• Circle sold Binance 1,237,011 Class A shares at $80.84 each, raising $100 million.
• The private placement closed September 17.
• A five-year deal requires Circle to pay Binance a monthly fee based on USDC held via its wallet infrastructure.
• Binance will promote USDC on its platform as part of the agreement.
• Binance cannot sell or hedge the shares for up to two years.
• The deal supersedes previous agreements from November 2024 and August 2025.

Stablecoin issuer Circle sold Binance 1,237,011 Class A shares at $80.84 each, raising $100 million in a private placement that closed on September 17. This transaction is part of an expanded commercial deal where Circle will pay Binance a monthly incentive fee tied to the amount of USDC held through its wallet infrastructure. In return, Binance will promote the stablecoin on its platform for five years, with provisions for early termination by either party. This marks the third iteration of their partnership within two years, replacing prior agreements from November 2024 and August 2025. Binance is restricted from selling or hedging the newly acquired shares for up to two years, though it retains voting rights. The shares were sold at a discount to Circle's market price at the time, with Binance's stake now valued at approximately $116.9 million, an increase of $16.9 million from its purchase price, though this gain is unrealized due to the lock-up period. Circle recently launched its Arc Layer 1 network, with Binance among the exchanges providing access. The deal comes as federal prosecutors reportedly investigate Binance for alleged breaches of U.S. sanctions on Iran.