According to a regulatory filing Circle submitted to the US Securities and Exchange Commission, the company has reached a partnership agreement with Binance, the world’s largest exchange by scale. Under the deal, Binance is investing $100 million in Circle and has signed a five-year commercial contract, through which Binance will help expand the use of the USDC stablecoin on the Binance platform, with a particular focus on emerging markets. Binance detailed the partnership in its official announcement.
Subscribing to Circle’s New Shares Through a Private Placement
Circle is the issuer of the US-dollar stablecoin USDC and is also a publicly listed US company. Unlike USDT and other stablecoins, USDC has emphasized regulatory compliance from its very founding, which is precisely why Circle was able to go public successfully. Even so, USDC’s scale remains too small compared with USDT for now.
In this partnership, Binance subscribed to newly issued Circle shares through a private placement. Binance obtained 1,237,011 Class A common shares at $80.84 per share. Under the agreement, Binance is in principle barred from selling, transferring, or hedging these shares for two years, though agreed-upon exceptions exist. Binance retains voting rights over the shares during the holding period.
USDC Promotion Tied to the Equity Stake
Binance will take charge of promoting and integrating the USDC stablecoin on its platform, while Circle will provide the infrastructure supporting USDC holding and use. Circle will also pay Binance a monthly incentive fee based on the amount of USDC held, though Circle has not disclosed the specific rate.
The equity investment and the promotional partnership land together, giving Circle both capital and a distribution channel through a major exchange, while Binance gains a Circle equity stake along with fee income tied to USDC holdings. The agreement runs for five years, and under its terms, either party may terminate the contract early under specified circumstances.
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