Circle Internet Group (NYSE: CRCL) shares gained 2.76% in pre-market trading Tuesday after Binance disclosed a $100 million investment in the stablecoin issuer and expanded a commercial agreement covering USDC use across the crypto exchange’s platform.
The move extended Monday’s 2.95% advance in Circle stock, when CRCL closed at $94.49.
The Binance announcement followed the Securities and Exchange Commission’s release of a new framework for certain tokenized U.S. equities. Bernstein analyst Gautam Chhugani named Circle among companies that could benefit from the regulatory changes.
Key Facts:
- Binance purchased 1,237,011 Circle Class A shares at $80.84 each.
- Circle and Binance entered an expanded five-year USDC commercial arrangement.
- Binance plans to broaden USDC use in savings and investment products and offer incentives including lower fees on some USDC trading pairs.
- The SEC’s Innovation Exemption creates a conditional pathway for qualifying tokenized U.S. stocks to trade through onchain venues.
Binance Buys 1.24 Million Circle Shares and Deepens USDC Partnership
Circle said in a Form 8-K filed Tuesday that Binance’s $100 million investment in Circle and the expanded partnership were executed on Sept. 17. Binance bought the shares through an unregistered private placement at $80.84 apiece, a price Circle said reflected a discount to CRCL’s market price prior to closing.
The shares are subject to transfer restrictions generally lasting until the earlier of two years after closing or certain specified termination events under the commercial agreement. Binance retains voting rights during the restricted period.
Separately, Circle agreed to pay Binance a monthly incentive fee calculated as a percentage of USDC held through Circle’s Modular Smart Contract Wallet infrastructure. Binance also agreed to undertake additional activities promoting USDC on its platform.
The new agreement replaces previous arrangements signed in November 2024 and August 2025.
A Binance spokesperson told The Wall Street Journal that the exchange plans to integrate USDC into existing and future digital-asset savings and investment products while using incentives such as lower spot-trading fees on USDC-denominated pairs.
The companies have also expanded their technical integration. Circle launched Arc’s public mainnet on Sept. 16, the same day Binance said it had completed integration of USDC deposits on the Layer-1 blockchain network, which is designed for stablecoin finance and onchain financial applications.
Circle Reports $73.3 Billion of USDC in Circulation
Circle reported $73.3 billion of USDC in circulation in the second quarter, up 19% from a year earlier. Reserve income increased 5% to $668 million, while total revenue and reserve income rose 7% to $701 million.
Distribution, transaction, and other costs totaled $412 million in the quarter. Circle has said distribution expenses can increase as it adds partners and approved participants.
Circle’s 10-Q says reserve income is a function of stablecoins in circulation and the reserve return rate, while distribution costs payable to key distributors such as Binance are directly affected by USDC balances on their platforms.
SEC Issues Tokenized Securities Exemption
On Sept. 17, the SEC granted temporary, conditional relief allowing qualifying Tokenized Securities Venues to facilitate trading in tokenized National Market System stocks through permissioned automated-market-maker liquidity pools.
The framework requires, among other conditions, that tokenized stocks provide holders the same rights and privileges as the equivalent traditional shares. Issuers must also receive notice and an opportunity to object before an unaffiliated third party makes their stock available.
Smart contracts used by qualifying venues must be public, auditable, and deployed on a public, permissionless distributed ledger.
Bernstein’s Chhugani said the rules bring tokenized equities trading on public blockchains within the existing U.S. securities and exchange regulatory framework. He referenced Ethereum, Solana, and decentralized infrastructure such as Uniswap and named Circle alongside Coinbase, Robinhood, Bullish, and Figure Technology Solutions among companies he views as beneficiaries.
The SEC itself did not designate Ethereum, Solana, or Uniswap by name in its announcement; those references came from Bernstein’s analysis.
Market-data services also show Bernstein maintaining a positive rating on Circle with a $140 price target following the regulatory announcement.
CRCLon Trades Separately From NYSE-Listed Circle Shares
Circle Internet Group Tokenized Stock (CRCLon), an Ondo tokenized product tracking economic exposure to CRCL, was trading at $95.66 at 7:46 a.m. ET, down 1.04% over 24 hours, according to CoinMarketCap.
CRCLon is separate from NYSE-listed CRCL. Ondo says its tokenized products provide economic exposure to their underlying assets but are not themselves stocks, ETFs, or ADRs and do not provide holders with rights to hold or receive the underlying assets. The Ondo Stocks platform is not available to U.S.-based clients.
Circle’s filing and the SEC announcement do not state that CRCLon itself has been admitted to trade under the new U.S. Innovation Exemption.
Separately, Reuters reported early Tuesday, citing Bloomberg News, that U.S. federal prosecutors are investigating whether Binance violated sanctions on Iran by failing to prevent certain trading activity on its platform and are examining whether the exchange knowingly allowed the trading. Binance said it has a zero-tolerance approach to sanctions violations and cooperates with law enforcement; the Justice Department declined to comment.
What Comes Next
Binance said it plans to expand USDC integration across savings, investment, and trading products.
Future Circle filings and earnings reports will provide updated figures for USDC circulation, reserve income, and distribution-related expenses, while further SEC disclosures will show which venues and tokenized securities operate under the exemption.
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