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

Binance acquired $100 million of Circle stock in a private placement that closed on Sept. 17, buying 1.24 million Class A shares at $80.84 each, according to an SEC filing. The share price reflected a discount to Circle’s market value before the transaction, the filing said. Because the sale was unregistered, Binance’s ability to resell the shares is limited unless they are registered or an exemption applies.

Under terms disclosed with the equity purchase, Binance generally cannot sell, transfer or hedge the shares until the earlier of two years or termination of the commercial arrangements in certain circumstances, though it retains the right to vote the shares. The equity closing coincided with an expanded five-year commercial partnership between the companies.

As part of the new agreement, Circle will pay Binance a monthly incentive fee calculated as a percentage of USDC holdings maintained through Circle’s Modular Smart Contract Wallet service, and Binance will carry out promotional activities for USDC on its platform. The revised five-year arrangement replaces earlier USDC partnerships the firms signed in November 2024 and August 2025, and either company may terminate the deal early if specified events occur.

Company executives framed the move as a strategic commitment. Binance co-CEO Richard Teng characterized the investment and partnership as a long-duration commitment to broaden access to a stable digital dollar, while Circle CEO Jeremy Allaire said the deal could help expand dollar-based services and access in global emerging markets. The commercial agreements were signed by Circle subsidiaries, and the share sale closed immediately afterward, per the filing.