Binance buys $100 million Circle stake in five-year USDC promotion deal

Binance bought $100 million of Circle shares as the companies signed a five-year deal that pays the crypto exchange to promote the USDC stablecoin on its platform.

Circle issued Binance 1.24 million Class A shares at $80.84 each in a private placement that closed Sept. 17, according to an SEC filing published Tuesday. The price reflected a discount to Circle’s market value before the sale, the company said.

Binance cannot sell, transfer or hedge the shares for as long as two years, subject to certain exceptions, but retains the right to vote them.

The equity purchase closed alongside an expansion of the companies’ existing USDC partnership. Circle agreed to pay Binance a monthly incentive fee calculated as a percentage of the USDC held through Circle’s Modular Smart Contract Wallet service, while Binance will carry out promotional activities for the stablecoin.