Binance Buys $100M Circle Stake in Five-Year USDC Deal

Binance bought $100 million of Circle stock in a private placement and signed a five-year deal to promote USDC for monthly incentive fees.

Binance has bought $100 million of Circle stock while signing a five-year deal that pays the crypto exchange to promote the USDC stablecoin on its platform. Circle issued Binance 1,237,011 Class A shares at $80.84 each in a private placement that closed September 17, 2026, according to an SEC filing published Tuesday. Circle said the per-share price reflected a discount to its market value before the sale.

The placement structure is striking: Binance generally cannot sell, transfer or hedge the shares until the earlier of two years or termination of the commercial arrangements under certain circumstances, though it retains voting rights. CoinGape reports the shares are subject to the lockup of as long as two years, with some exceptions, and that Binance cannot enter any hedging, swap or derivative arrangements on them. The Cryptonomist notes the discount and lockup are familiar tools in strategic private placements, signaling Binance is not in it for a quick flip and giving Circle breathing room from sell pressure while the exchange still gets a governance say.

Alongside the equity purchase, Circle and Binance expanded their 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. According to CoinGape, the new agreement supersedes and replaces the deals Circle previously signed with Binance in November 2024 and August 2025. The arrangement runs for five years, though either party may terminate it early if specified events occur, and Circle's subsidiaries signed the related commercial agreements.

CNBC reports the agreement signals a push to expand USDC beyond its historically U.S.-focused base and compete more directly with stablecoin giant Tether in international crypto markets. Tether's USDT remains larger, with roughly $183 billion in circulation versus about $75 billion for USDC, according to CryptoQuant data cited by CNBC, and USDT has a strong international trading presence, while USDC has built its pitch around regulated markets, transparency and payments. CNBC frames the rivalry as a battle over which stablecoin becomes the default for global crypto trading, payments and finance — and Binance's global user base is now formally aligned with USDC's side.

Binance co-CEO Richard Teng told CoinDesk the $100 million investment and five-year commitment represent 'long-duration conviction,' adding that 'a stable, trusted digital dollar should not be a privilege — it should be available to anyone with a phone.' Circle co-founder and CEO Jeremy Allaire called Binance 'the most widely used wallet for dollar stablecoins' and said the partnership could expand dollar access, support savings and investment with digital asset products, and reach people and businesses throughout global emerging markets. Market reaction was positive: CNBC and The Economic Times report Circle shares rose in premarket trading after the announcement.

The Cryptonomist argues the deal is notable less for its size and more for the alignment: Binance now holds a direct equity stake, a governance voice through voting rights, a recurring fee tied to USDC usage, and a formal promotional mandate. Circle, which CNBC says has been building beyond issuance — launching its Arc blockchain last week and pushing into nanopayments and agentic commerce — still needs USDC to drive that expansion, and is betting Binance's user base can accelerate international growth.