Binance Invests $100 Million in Circle, Renews USDC Deal

Circle said Binance invested $100 million in the stablecoin issuer and renewed a five-year commercial agreement to expand the reach of USDC, giving Circle a new distribution channel as it competes with Tether. The arrangement also links Binance’s financial interests to the growth of USDC, although the available figures do not show that it has already changed the stablecoin’s market position. An SEC filing shows Binance bought 1,237,011 Circle Class A shares at $80.84 each in a private placement that closed September 17, generating $100 million for Circle. Binance retains voting rights attached to the shares but agreed to restrictions on selling, transferring, pledging or hedging them for up to two years, subject to exceptions. Under the commercial agreement, Circle will pay Binance monthly incentives tied to qualifying USDC balances held through Circle’s wallet infrastructure. Binance agreed to promote USDC on its platform. The renewed five-year arrangement focuses in part on distribution in emerging markets and replaces earlier agreements between the companies. Either party may terminate it before the full term under specified conditions.