Binance Invests $100 Million in Circle to Strengthen USDC Partnership

Binance has made a significant investment of $100 million in Circle, the issuer of the USDC stablecoin, acquiring 1,237,011 shares of Circle’s Class A common stock through a private placement. This deal, which closed on September 17, saw Binance purchasing shares at $80.84 each, approximately 5% below Circle’s market price at the time.

Beyond the equity stake, Binance and Circle have established a new five-year commercial agreement aimed at accelerating the adoption of USDC across Binance’s platform, particularly in emerging markets where demand for dollar-denominated digital assets is increasing. The shares acquired by Binance come with a two-year lockup period, preventing the exchange from selling them on the open market until at least September 2028.

As part of the new agreement, Circle will provide Binance with monthly incentive fees based on the USDC balances held in its wallet infrastructure. In exchange, Binance will engage in promotional activities and integrate USDC more deeply within its ecosystem. This new contract replaces two earlier agreements related to USDC from November 2024 and August 2025.

Circle CEO Jeremy Allaire emphasized Binance’s extensive global reach as a crucial factor for expanding access to digital dollar products worldwide. Binance co-CEO Richard Teng described the investment as a demonstration of “long-duration conviction” in Circle’s position as a primary USDC provider. Following the announcement, Circle’s stock saw a roughly 2% increase in pre-market trading, bringing shares to around $96 and elevating the company’s market capitalization to nearly $24 billion.

With a market cap of nearly $75 billion, USDC is currently the second-largest stablecoin, trailing only Tether’s USDT. The two-year lockup on Binance’s shares is expected to mitigate any immediate selling pressure until at least September 2028.