Binance invests 100 million USD in Circle, expanding a 5-year USDC partnership relationship

Circle, the company behind the USDC stablecoin, has just announced a new 5-year cooperation agreement with Binance, thereby continuing to expand the use of USDC across the ecosystem of this major cryptocurrency exchange.

According to a Form 8-K filing that Circle disclosed on September 22, Circle’s subsidiaries signed a new agreement with Binance on September 17. The new agreement aims to promote the use of USDC on Binance and replace the prior agreements that the two parties signed in November 2024 and August 2025.

Under the new agreement, Circle will pay Binance monthly incentive fees. The fees will be calculated based on the percentage of USDC held through Circle's Modular Smart Contract Wallet infrastructure service.

In return, Binance will step up its promotion of USDC on its platform to encourage greater use of the stablecoin. This indicates that the relationship between Binance and Circle is focused not only on listing or supporting USDC trading, but also on increasing the amount of USDC used and held within the Binance ecosystem.

Notably, also on September 17, Binance invested USD 100 million in Circle by purchasing 1,237,011 of the company's Class A common shares.

The purchase price was set at a discounted rate of USD 80.84 per share, equivalent to a total transaction value of approximately USD 100 million. The transaction has been completed.

The shares purchased by Binance will be subject to transfer restrictions for the customary period of two years. However, the agreement includes provisions allowing the restrictions to be lifted early in certain circumstances, as well as certain exceptions set out in the agreement.

The USD 100 million investment comes as Circle continues to expand USDC across global exchanges and financial platforms. Binance is one of USDC's key distribution channels, as the stablecoin is used for trading, payments, and liquidity flows in the crypto market.