Cryptocurrency exchange Binance has acquired a $100 million equity stake in Circle Internet Financial as part of a broadened five-year commercial deal to promote the USDC stablecoin. According to a Form 8-K filed with the U.S. Securities and Exchange Commission, Binance purchased 1,237,011 shares of Circle’s Class A common stock at $80.84 per share through a private placement transaction that closed immediately upon execution.
The newly signed commercial agreement expands the promotion of USDC held through Circle’s Modular Smart Contract Wallet infrastructure. Under the five-year arrangement, which supersedes previous agreements executed in 2024 and 2025, Circle will pay Binance a monthly incentive fee calculated as a percentage of the USDC held via the wallet service. The contract includes unilateral termination rights for both parties prior to its expiration under specific conditions.
As part of the equity deal terms, Binance’s acquired shares are subject to a two-year lockup period during which the exchange is restricted from selling, transferring, or hedging the stock, barring certain customary exceptions or specific contract termination scenarios. Binance will maintain full voting rights associated with the share position throughout this restriction period.
The investment coincides with Circle’s broader effort to expand its utility ecosystem beyond its core stablecoin issuance. The firm recently deployed the public mainnet for Arc, its custom Layer 1 blockchain network that utilizes USDC for transaction fee payments, launching with over 100 applications and a founding validator roster featuring major financial institutions including BlackRock, DTCC, ICE, Mastercard, and Visa.
