Binance has bought a $100 million stake in Circle, the company behind the USDC stablecoin. The deal gives Binance a direct shareholding in Circle and also expands the business relationship between the two crypto firms.
Circle said on September 22 that Binance bought about 1.24 million shares of Circle. The shares were issued at $80.84 each through a private placement. The transaction closed on September 17, according to a regulatory filing.
At the same time, Binance and Circle agreed to a new five-year commercial arrangement that focuses on the wider use of USDC. Binance will promote USDC across its platform, while Circle will pay Binance a monthly incentive fee tied to certain USDC balances.
The deal brings two major parts of the crypto market closer together. Binance runs one of the world’s largest crypto exchanges, while Circle issues USDC, a major dollar-backed stablecoin.
Binance Buys 1.24 Million Circle Shares
Circle issued 1,237,011 Class A common shares to Binance at a price of $80.84 per share. The transaction took place through a private placement rather than a normal public stock sale.
The total value of the share purchase was about $100 million. Circle said the price was below its market value at the time of the deal.
The purchase gives Binance an ownership position in Circle. However, Binance cannot freely sell, transfer, or hedge the shares for up to two years, subject to certain conditions and exceptions. Binance still keeps the voting rights attached to the shares during that period.
This restriction means Binance has a long-term financial link with Circle. It also connects Binance’s interests with the future growth of Circle and its stablecoin business.
A Five-Year Deal for USDC
The share purchase is only one part of the new agreement. Binance and Circle have also signed a five-year commercial deal focused on USDC.
Under the arrangement, Binance will carry out activities that promote USDC across its platform. Circle, in return, will pay Binance a monthly incentive fee based on qualifying USDC balances held through Circle’s Modular Smart Contract Wallet infrastructure.
The new agreement replaces earlier arrangements between the two companies. Circle and Binance first formed a wider strategic partnership in December 2024. That deal aimed to make USDC more available across Binance’s products and services.
The latest agreement gives that relationship a longer five-year term. Either company can end the deal early under certain conditions.
What Is USDC?
USDC is a stablecoin issued by Circle. Unlike Bitcoin, whose price can change sharply, USDC aims to keep a value close to one U.S. dollar.
Stablecoins have become an important part of the crypto market. Traders use them to move money between crypto assets without the need to leave the digital asset system. They can also support payments and other financial uses.
Circle’s USDC has a market value of nearly $75 billion, according to data cited by Reuters. That makes it one of the largest stablecoins in the global crypto market.
The wider use of USDC can therefore give Circle more reach across crypto markets. For Binance, greater USDC use can also support more activity across trading, savings, payments, and other services.
Why Binance Wants a Closer USDC Link
Binance already offers USDC to its users, but the new agreement creates a stronger business connection between the exchange and Circle.
The exchange can promote USDC across its platform while Circle has a direct incentive to support USDC use through Binance. This creates a commercial relationship where both sides have a reason to increase activity around the stablecoin.
Binance has also continued to expand its support for USDC across different blockchain networks. On September 16, the exchange announced that it had completed its USDC integration on the Arc network and opened deposits.
The latest five-year deal comes soon after that move. Together, the developments show how USDC is becoming part of a wider range of blockchain and exchange services.
Circle Gets a Major Crypto Partner
For Circle, the Binance deal provides access to one of the biggest crypto trading platforms in the world.
Binance has a large global user base and offers many types of digital asset services. A stronger USDC presence on such a platform could help Circle expand the stablecoin’s use among traders and other crypto users.
Circle has also worked with several large financial companies on USDC use. Its recent business activity includes partnerships and integrations with firms such as BNY, Standard Chartered, JCB, Nium and others.
The Binance deal therefore fits into Circle’s wider effort to place USDC into more parts of the financial system.
Binance Has a Financial Interest in Circle
The $100 million investment adds another layer to the relationship. Binance is no longer only a business partner that promotes or uses USDC. It now owns part of Circle.
That can give Binance a direct financial interest in Circle’s future performance. The two firms still remain separate companies, but their business goals now have a stronger link.
The share purchase also comes at a time when Circle has received more attention from investors. Circle is a public company, and its shares trade on the stock market.
Reuters reported that Circle shares rose nearly 2% in premarket trading after the news. The move showed an immediate market response to the announcement.
The Deal Builds on Earlier Partnerships
The new agreement did not appear from nowhere. Binance and Circle have worked together for several years.
In November 2024, the companies entered an agreement under which Binance agreed to promote USDC and maintain part of its treasury in USDC. Circle also agreed to pay incentive fees based on certain USDC balances.
In August 2025, the companies expanded their relationship further. That agreement covered USDC held through Circle’s Modular Smart Contract Wallet infrastructure and had a four-year term.
The latest five-year deal now replaces those earlier commercial arrangements.
This history shows a steady expansion of the relationship rather than a sudden connection between the two companies.
USDC and the Future of Crypto Payments
Stablecoins are no longer used only by crypto traders. Companies and financial institutions are also testing them for payments, settlement, transfers, and other financial tasks.
Circle has expanded its work in this area through several recent partnerships. Its Circle Payments Network has reached $14.7 billion in annualized transaction volume based on the 30 days before the end of its second quarter of 2026. Circle also said that 175 financial institutions were enrolled in the network at that time.
USDC also plays a key role in Circle’s work with financial institutions and blockchain applications. A larger presence on Binance could give the stablecoin another major channel for use.
For Binance, stablecoins can support a wide range of services because users can move dollar-based digital value across the exchange and supported blockchain networks.
What Happens Next
The new agreement has a term of five years, which gives both companies a long period to build their USDC relationship. Binance will promote USDC, while Circle will provide monthly incentive payments based on qualifying USDC balances.
The $100 million investment also gives Binance a direct stake in Circle. The exchange bought 1,237,011 shares at $80.84 each, with restrictions on the sale, transfer, or hedging of those shares for up to two years under the agreement.
The key question now is how much the partnership can expand USDC use across Binance’s products and services.
The deal connects two important parts of the crypto industry: a major exchange and a major stablecoin issuer. It also shows how stablecoins are becoming a central part of the broader digital asset market.
For Circle, Binance provides a large platform for USDC. For Binance, the investment creates a direct financial link with the company behind one of the world’s largest dollar-backed stablecoins.
The new partnership will last five years unless either side ends it earlier under the terms of the agreement. Its long duration gives both firms time to expand USDC use and build new services around the stablecoin.
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