Crypto · updated 1h ago · 3 min read
Binance Invests $100 Million in Circle, Expanding Five-Year USDC Partnership
Binance buys about 1.24 million Circle shares for $100 million in private placement. Five-year expanded agreement requires Binance to promote USDC on its platform and pay incentives.
Whether the deal is pitched as emerging-markets access or Tether rivalry.
7 of 8 outlets skipped it: bigGo cites Circle annual report: Binance-related distribution costs rose by $152.1m in 2025.
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BigGo Finance
“with particular focus on emerging markets where dollar access remains limited.”Read the original ↗
CNBC
“compete more directly with stablecoin giant Tether in international crypto markets.”Read the original ↗
One outlet emphasises market access; another emphasises rivalry and international competition.
Binance backs USDC
Binance agreed to invest $100 million of its own capital in Circle Internet Group through a private placement that closed September 17, buying 1,237,011 Class A shares at $80.84 apiece at a discount to Circle’s market price. Circle will pay Binance a monthly incentive fee calculated as a percentage of USDC balances held through Circle’s Modular Smart Contract Wallet infrastructure, while Binance will carry out promotional activities aimed at expanding USDC adoption. Binance and Circle said the expanded five-year arrangement replaces agreements signed in November 2024 and August 2025, and Binance agreed not to sell, transfer, pledge, or hedge the newly acquired shares for up to two years from closing.
Circle CEO Jeremy Allaire said Binance has built “one of the largest and most dynamic platforms in the world for using digital currency,” and he said the partnership aims to expand dollar access, support savings and investment, and reach people and businesses throughout global emerging markets. Binance co-CEO Richard Teng framed the investment as long-term commitment, saying “Our $100 million investment and five-year commitment represent long-duration conviction.”
Incentives and lockups
Circle issued Binance 1,237,011 shares of its Class A common stock at $80.84 per share in a private placement on Sept. 17, and the purchase price reflected a discount to Circle’s market value before the transaction.
Binance agreed not to sell, transfer, assign, pledge or hypothecate the Circle shares for up to two years, while Binance retains voting rights during the lockup period.
Circle will pay Binance a monthly incentive fee tied to USDC held through Circle’s Modular Smart Contract Wallet infrastructure, and Binance will promote USDC on its platform under the expanded five-year partnership.
CoinDesk said the equity purchase closed alongside an expansion of the companies’ existing USDC partnership, and it said the shares were sold in an unregistered private placement that limits Binance’s ability to resell unless they are registered or an applicable exemption applies.
Jeremy Allaire said the partnership could help expand access to dollar-based financial services worldwide, and he said “Together, we see incredible opportunities to leverage USDC to expand dollar access, support savings and investment with innovative digital asset products.”
USDC versus USDT
Circle reported $73.3 billion of USDC in circulation at the end of the second quarter, up 19% year over year, and Circle generated $701 million in quarterly revenue and reserve income. CryptoQuant data in the reporting showed USDT still dominates in raw circulation, with roughly $183 billion outstanding versus about $75 billion for USDC, even as Visa-adjusted blockchain data showed USDC accounted for roughly 70% of adjusted stablecoin transaction volume during the first half of 2026. Binance’s deal with Circle arrives as USDC gains ground in transaction activity despite remaining smaller than Tether’s USDT by circulating supply, and the sources framed the competition as a contest over which token becomes the default for global crypto trading, payments, and finance.
Circle and Binance said their partnership also connects to Arc, with the equity placement closing one day after Circle launched Arc, a Layer 1 blockchain network with BlackRock, DTCC, and Visa among its founding validators. Richard Teng said the partnership is designed to deliver a “more inclusive, transparent and compliant digital economy,” and he argued that “a stable, trusted digital dollar should not be a privilege.”