The Binance invested US$ 100 million in Circle, the issuer of USDC, and signed a new five-year commercial agreement to expand distribution of the stablecoin globally, with a focus on emerging markets. The transaction turns the exchange into a shareholder of a company that, a few years ago, competed directly with the stablecoin that Binance itself promoted.
The stake was acquired through a private placement of Circle Class A shares. According to information disclosed by the company, Binance received the shares with a 5% discount on the market price of CRCL before the close and agreed not to transfer them for up to two years, except for exceptions provided for in the agreement.
Regulatory documents cited by Reuters show that the transaction was completed on September 17. Circle sold about 1.24 million shares at US$ 80.84 each.
The new contract will last five years. Binance will be responsible for promoting and expanding the integration of USDC on its platform, while Circle will provide the infrastructure needed for storage and use of the stablecoin. The agreement also provides for monthly incentive payments from Circle to the exchange, tied to the presence of USDC in the infrastructure used by Binance.
USDC had a market value close to US$ 75 billion at the time of the announcement, remaining among the largest dollar-backed stablecoins.
From USDC competitor to Circle shareholder
The rapprochement represents a significant change from the strategy Binance adopted four years ago. In September 2022, the exchange announced the automatic conversion of USDC, USDP, and TUSD balances held by users to BUSD, the stablecoin associated with Binance itself and issued by Paxos. The company also removed several pairs involving USDC from its platform.
The strategy began to be dismantled in 2023, after Paxos halted the issuance of new BUSD. Binance gradually reduced support for the asset and shut down the automatic conversion system from other stablecoins to BUSD.
Circle and Binance formalized a new relationship in December 2024, when they announced a partnership to expand USDC in the exchange's products. At that time, Binance said it would make the stablecoin available for trading, savings, and payments and would also begin using it in corporate treasury operations.
The investment announced this Tuesday (22) deepens that relationship by putting Binance capital directly into Circle. In addition to the equity stake, the two companies are tied by a five-year contract aimed at expanding USDC, especially in emerging markets.
