TL;DR
- Binance acquired a $100M stake in Circle through a private placement, purchasing 1.24 million shares at $80.84 each.
- A five-year commercial agreement was signed establishing that Circle will pay Binance a monthly fee tied to the USDC circulating through its wallet infrastructure.
- The shares are subject to a two-year lock-up period during which the exchange may not sell, transfer, or hedge them.
Binance announced the purchase of $100 million in Circle shares through a private placement that closed on September 17, according to a filing with the SEC recently published.
The transaction involved the acquisition of 1.24 million Class A shares at a price of $80.84 each, applying a discount relative to the market value prior to the transaction. Simultaneously, both companies signed a five-year commercial agreement for the promotion of USDC on the exchange’s platform.
Binance Is a Pillar of the Digital Dollar
The new agreement replaces the pacts between both firms, signed in November 2024 and August 2025. Under the new framework, Circle will pay Binance a monthly fee calculated as a percentage of the USDC held through Circle’s Modular Smart Contract Wallet service, while the exchange will carry out stablecoin promotion activities. Either party may terminate the partnership early if specific events set out in the contract occur.
The acquired shares were issued in an unregistered private placement, which restricts Binance’s ability to resell them unless they are registered or an exemption applies. In addition, the exchange will not be able to sell, transfer, or hedge the shares until two years have elapsed or the commercial agreements end under certain circumstances, although it retains voting rights over them.
Financial Accessibility for Emerging Markets
Richard Teng, co-CEO of Binance, stated that the transaction is a long-term bet. “Our $100 million investment and five-year commitment represent a long-term conviction,” he said. “A stable, reliable digital dollar should not be a privilege, but should be available to anyone with a phone.”
Jeremy Allaire, co-founder, president, and CEO of Circle, noted that the partnership could improve accessibility to dollar-based financial services at a global scale. “We see incredible opportunities to expand access to the dollar, support savings and investment with innovative digital asset products, and reach individuals and businesses in emerging markets around the world,” he said.
