Binance has acquired a $100 million equity stake in Circle Internet Group, the issuer of the USDC stablecoin, in a deal that also renews and extends the two companies' commercial partnership for another five years.
The investment was disclosed in a filing Circle made with the U.S. Securities and Exchange Commission on September 22. According to the filing, Binance received 1,237,011 Class A shares at a price of $80.84 per share, a level that represented a discount to Circle's market value ahead of the sale. The transaction closed on September 17.
The shares were issued through an unregistered private placement and were not registered with the SEC. Binance's ability to sell, transfer or hedge the stock is restricted for two years, or until the termination of the commercial agreements between the two firms, whichever comes first. During that restriction period, Binance retains voting rights attached to the shares.
Commercial terms expanded
Alongside the equity purchase, Binance and Circle have signed a new five-year commercial agreement that replaces prior contracts dated November 2024 and August 2025. Under the new terms, Binance will promote USDC across its trading platform and through its Modular Smart Contract Wallet services.
In exchange, Circle will pay Binance a monthly incentive fee calculated as a percentage of USDC balances held through the service. The filing does not disclose the exact percentage, nor does it specify figures that would apply in the event of early termination. Both companies retain the right to end the alliance early under certain contractual conditions.
Why it matters for Europe
USDC has built a substantial presence among European crypto users and institutions navigating the bloc's evolving stablecoin rules under the Markets in Crypto-Assets regulation. A deeper tie-up between the world's largest exchange by trading volume and one of the two dominant dollar-pegged stablecoin issuers is likely to reinforce USDC's distribution across Binance's European user base, potentially shaping how liquidity and settlement flows move between exchanges and wallets operating in the region.
The equity stake also gives Binance a direct financial interest in Circle's performance, beyond the transactional fees it earns from facilitating USDC trading and custody, tying the two companies together more closely than their previous distribution-only arrangements.
