Binance has acquired a $100m stake in stablecoin issuer Circle as part of an expanded five-year agreement to promote USDC through its platform.
The private placement closed on 17 September, with Binance purchasing 1.24 million Circle shares at $80.84 each. Circle will also pay Binance monthly incentives linked to the amount of USDC held through Binance’s wallet infrastructure.
Under the agreement, Binance will promote USDC to users on its platform, while Circle will provide the monthly payments tied to USDC holdings.
Binance will generally be unable to sell, transfer or hedge the shares for up to two years. The exchange will, however, retain voting rights attached to its stake.
The arrangement combines Binance’s investment in Circle with a longer-term commercial partnership focused on increasing the use of USDC. Circle sold the shares directly to Binance through the private placement, worth $100m in total.
The five-year agreement expands an existing relationship between the two companies, with financial incentives for Binance based on USDC held through its wallet infrastructure and a commitment from Binance to support the stablecoin on its platform.
