Binance has taken a $100 million equity stake in Circle through a share issuance.
Circle announced the expanded partnership on September 22, following the share issuance disclosed in a U.S. securities filing. The companies renewed a five-year commercial agreement to promote USDC globally, with an emphasis on emerging markets.
Under the arrangement, Circle will provide wallet infrastructure, while Binance will conduct USDC promotional activities and receive monthly incentive fees tied to qualifying USDC balances held through that infrastructure.
Binance’s $100 million private placement in Circle
Circle issued Binance 1,237,011 Class A shares on September 17 at $80.84 apiece, raising $100 million in gross proceeds, according to Circle’s filing with the U.S. Securities and Exchange Commission. The transaction was structured as a private placement.
The shares carry restrictions on sale, transfer or hedging for as long as two years, subject to customary exceptions, according to CoinDesk. Binance retains voting rights during that period.
The investment gives Binance a direct equity interest in Circle alongside the new commercial terms. The SEC filing does not put a value on the broader distribution arrangement or disclose the level of incentive fees that Binance may receive.
Five-year USDC promotion agreement
Under the five-year agreement, Binance will promote USDC worldwide, particularly in emerging markets, while Circle provides the supporting wallet infrastructure.
Circle will pay Binance monthly incentive fees based on USDC held through its Modular Smart Contract Wallet infrastructure, the SEC filing states.
The arrangement renews the companies’ commercial relationship and establishes a distribution mechanism tied to USDC balances held through Circle’s wallet system rather than solely to the initial $100 million share purchase. Circle described the deal as an expansion of the companies’ strategic partnership.
