Binance Invests $100 Million in Circle and Enters Five‑Year USDC Promotion Deal

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. The transaction was disclosed in Circle’s Form 8‑K filing.

Equity Placement Details

Binance received voting rights on the shares but agreed not to sell, transfer, pledge or hedge them for two years, except for certain affiliate or legal‑required transactions. At the time of filing, Circle’s stock was trading in the mid‑$80s and rose to $94.49 by September 21, valuing Binance’s stake at roughly $116.9 million, though the shares cannot be liquidated under the agreement.

Five‑Year USDC Promotion Arrangement

In a separate commercial agreement lasting five years, Circle will pay Binance a monthly incentive fee calculated as a percentage of USDC held through Circle’s Modular Smart Contract Wallet infrastructure. Binance, in turn, will promote USDC on its platform. Either party may terminate early if predefined events occur.

Background and Context

• This is the third version of the partnership between the two firms within two years, superseding agreements from November 2024 and August 2025.
• The deal was announced a day after Circle launched the Arc Layer‑1 network, which uses USDC as its gas token and includes validators such as BlackRock, DTCC and Visa.
• Binance’s involvement adds a second exchange to Circle’s distribution network, complementing Coinbase’s existing role.