Binance isn’t just acting as a promotional partner this time—it’s effectively placing itself inside USDC’s profit structure.
On September 22, US dollar stablecoin issuer Circle announced that Binance has invested $100 million in the company. At the same time, both sides reached a new five-year commercial agreement under which Binance will expand the promotion and use of USDC on its platform, with a particular focus on developing emerging markets. According to documents filed by Circle with the U.S. Securities and Exchange Commission, both the commercial agreement and the share subscription agreement were signed on September 17. Binance subscribed for 1,237,011 shares of Class A common stock at $80.84 per share. The subscription price represents a 5% discount to the pre-closing market price.
The appeal of this deal isn’t just the amount. Binance retains voting rights for the shares it purchased and also accepts a transfer restriction of up to two years. The new agreement replaces the old deals from November 2024 and August 2025. The incentive fees Circle pays to Binance each month are calculated as a certain percentage of the amount of USDC held through its modular smart contract wallet infrastructure service; the exact percentage has not been disclosed. Previously, Circle had paid Binance USDC promotional fees as agreed. In 2025, distribution-related costs related to Binance increased by $152.1 million compared with 2024.
If USDC’s visibility on Binance’s platform and in its wallets continues to rise, the market may find it easier to understand this as a “compliant stablecoin channel expansion.” But on the other hand, it’s also clear that Circle has to keep paying for the channel. Whether growth in circulating supply can be smoothly converted into higher profits still depends on subsequent financial performance. Are you more focused on USDC’s use cases within the Binance ecosystem, or on the profitability pressure of Circle’s collaboration?
Figure 1: Binance invests $100 million in Circle and renews its USDC cooperation · Key highlights
Image source: https://www.odaily.news/zh-CN/post/5213110
On September 22, US dollar stablecoin issuer Circle announced that Binance has invested $100 million in the company. At the same time, both sides reached a new five-year commercial agreement under which Binance will expand the promotion and use of USDC on its platform, with a particular focus on developing emerging markets. According to documents filed by Circle with the U.S. Securities and Exchange Commission, both the commercial agreement and the share subscription agreement were signed on September 17. Binance subscribed for 1,237,011 shares of Class A common stock at $80.84 per share. The subscription price represents a 5% discount to the pre-closing market price.
The appeal of this deal isn’t just the amount. Binance retains voting rights for the shares it purchased and also accepts a transfer restriction of up to two years. The new agreement replaces the old deals from November 2024 and August 2025. The incentive fees Circle pays to Binance each month are calculated as a certain percentage of the amount of USDC held through its modular smart contract wallet infrastructure service; the exact percentage has not been disclosed. Previously, Circle had paid Binance USDC promotional fees as agreed. In 2025, distribution-related costs related to Binance increased by $152.1 million compared with 2024.
If USDC’s visibility on Binance’s platform and in its wallets continues to rise, the market may find it easier to understand this as a “compliant stablecoin channel expansion.” But on the other hand, it’s also clear that Circle has to keep paying for the channel. Whether growth in circulating supply can be smoothly converted into higher profits still depends on subsequent financial performance. Are you more focused on USDC’s use cases within the Binance ecosystem, or on the profitability pressure of Circle’s collaboration?
Figure 1: Binance invests $100 million in Circle and renews its USDC cooperation · Key highlights
Image source: https://www.odaily.news/zh-CN/post/5213110
