Binance has invested $100 million in Circle Internet Group while signing a new five-year commercial agreement that expands USDC distribution across the exchange’s products and global user base.
Circle issued and sold Binance 1,237,011 Class A shares on September 17 at $80.84 per share, putting the private placement at approximately $100 million. Binance is subject to a two-year restriction on transferring the shares, with specified exceptions, while retaining the voting rights attached to the stock.
The equity purchase gives Binance a direct ownership position in the company behind USDC alongside a commercial arrangement that replaces earlier agreements between the two companies.
Circle Will Pay Binance Monthly USDC Incentives
The new agreement runs for five years, although either company can terminate it early under specified circumstances. Circle will pay Binance monthly incentive fees tied to USDC held through covered infrastructure, while Binance has committed to additional activities promoting use of the stablecoin across its platform.
Circle and Binance already had two major commercial agreements. A November 2024 arrangement required Binance to promote USDC and maintain part of its corporate treasury in the stablecoin. Circle paid Binance a $60.3 million upfront fee and agreed to monthly payments based on qualifying USDC balances held on the platform and in Binance’s treasury.
An August 2025 agreement expanded those payments to USDC held through Circle’s Modular Smart Contract Wallet infrastructure. The arrangement carried a four-year term, with a possible one-year tail if the companies did not agree to an extension. The September agreement replaces those earlier commercial structures with a new five-year framework.
Binance Expands USDC Access Across Circle Ecosystem
Binance has been expanding its technical support for Circle products alongside the commercial relationship. The exchange completed USDC integration on Circle’s Arc network on September 16, opening deposits as the blockchain entered public production.
Circle launched the Arc mainnet with USDC used for transaction fees and Binance among the exchanges providing access to the network. Circle said more than $74 billion of USDC was in circulation when Arc launched.
The investment was disclosed as Binance faces separate scrutiny over its U.S. compliance controls. Federal prosecutors are examining possible Iran-related sanctions violations in a new Binance probe involving activity after the exchange’s 2023 criminal settlement.
Circle’s regulatory filings identify Binance as one of its key USDC distribution partners and state that payments to major distributors can materially affect Circle’s costs as balances on those platforms grow. The new agreement keeps that incentive-based model in place for another five years while adding Binance as a Circle shareholder.
Be the first to comment