Binance invests USD 100 million in Circle, renews USDC deal

Binance has invested USD 100 million in Circle and renewed its partnership to promote USDC across its global platform for five years.

The renewed arrangement has a term of five years and centres on promoting USDC across Binance's global platform. As part of the partnership, Binance bought USD 100 million worth of Circle Class A common stock through a private placement. The shares were priced at a 5% discount to the market price of Circle's stock before closing.

The deal combines a direct equity stake with a multi-year commercial agreement. As a result, Binance becomes both a distribution partner for USDC and a shareholder in its issuer. Richard Teng, co-CEO of Binance, described the investment and the five-year commitment as a long-term position in Circle.

Division of roles

Under the expanded agreement, Binance will promote USDC throughout its global platform, with a particular focus on emerging markets. Circle will provide the infrastructure services that allow users to hold and use USDC.

The arrangement pairs Binance's distribution reach with Circle's role as issuer and infrastructure provider. Jeremy Allaire, Co-founder, Chairman and CEO of Circle, pointed to the scale of Binance's platform for using digital currency. It was also noted that Binance's wallets are widely used for holding dollar stablecoins, which makes the platform a significant channel for USDC adoption.