Binance has purchased $100 million worth of shares in Circle, the issuer of USDC. The two companies also signed a five-year commercial agreement aimed at increasing USDC adoption.
According to the disclosures, the private placement closed on September 17. Circle sold approximately 1.24 million Class A shares to Binance at $80.84 per share.
Monthly payments tied to USDC balances
The new agreement calls for Binance to carry out additional promotional activities for USDC on its platform. Circle will pay the exchange a monthly incentive fee tied to the amount of USDC held through its wallet infrastructure.
According to details from the company filing, the calculation will be based on balances held through Circle’s Modular Smart Contract Wallet service. The five-year arrangement replaces the companies’ previous commercial agreements.
This structure expands the financial relationship between the two companies. Binance becomes a Circle shareholder through its equity investment while also gaining access to incentive income linked to USDC usage on its platform.
Share transfer restrictions for up to two years
The shares purchased by Binance are subject to transfer restrictions lasting up to two years. With certain exceptions, the exchange cannot sell, transfer or hedge the shares during this period.
Binance will retain the voting rights attached to its shares. The agreement also includes provisions allowing the restrictions to end earlier under certain conditions.
The partnership began in 2024
Circle and Binance announced their first USDC-focused strategic partnership in December 2024. The original plan aimed to expand the stablecoin’s use across trading, savings and payment services.
Binance also announced that it would use USDC in its corporate treasury. Circle said it would provide the exchange with technology, liquidity and other infrastructure tools. The new investment adds direct equity ownership to the partnership.
According to a Binance spokesperson who spoke to The Wall Street Journal, the exchange plans to integrate USDC into existing and new savings and investment products. Incentives such as lower trading fees for USDC-denominated spot pairs are also planned.
The report said the expanded partnership aims to increase USDC adoption in emerging markets. Alongside the equity investment, the agreement focuses on widening users’ access to the stablecoin and expanding its use cases.
