Binance buys $100M stake in Circle, signs five-year USDC pact

Binance bought a $100 million stake in Circle through a private share sale and signed a five-year agreement to expand the use of the dollar-backed stablecoin USDC across its exchange.

According to Circle’s announcement, Binance acquired the shares at a 5% discount to Circle’s market price immediately before the transaction closed. The agreement bars Binance from selling the shares for up to two years, subject to limited exceptions.

Under the five-year commercial contract, Binance will list and support USDC across its product lines, with emphasis on markets outside the United States. The exchange plans to integrate USDC into trading, savings and investment products and to use the stablecoin for corporate treasury deposits. Circle will provide the infrastructure to hold and move USDC on the platform. Binance plans to encourage adoption through measures such as reduced fees on trading pairs tied to USDC.

The companies expanded their cooperation in early 2024, when USDC began appearing in more of Binance’s product offerings. The new equity stake gives Binance direct economic exposure to Circle in addition to distribution rights.

For Circle, the deal adds a major distribution channel for USDC outside the United States. Circle did not disclose how revenue will be shared with Binance or whether the agreement includes balance-based fee arrangements similar to prior partnerships. Neither firm specified target user numbers for the five-year term.

Circle will remain the issuer and administrator of USDC; Binance will not assume responsibility for issuing or administering the dollar-backed token. The companies described the pact as a commercial and strategic agreement to increase USDC usage across Binance’s global user base.