Binance Invests $100 Million in Circle as Firms Extend Five-Year USDC Partnership
Binance has invested $100 million in Circle as the two companies extend their partnership around USDC, according to Wu Blockchain a regulatory filing disclosed by Circle on September 22.
Circle (NYSE: CRCL) said in a Form 8-K that its subsidiaries entered into a new five-year agreement with Binance on September 17. The agreement is designed to expand USDC adoption and replaces earlier agreements signed in November 2024 and August 2025.
The same day, Binance purchased 1,237,011 shares of Circle’s Class A common stock at a discounted price of $80.84 per share, for a total investment of $100 million. The transaction has closed.
New Five-Year USDC Agreement
Under the new agreement, Circle will pay Binance monthly incentive fees tied to a percentage of USDC held through Circle’s Modular Smart Contract Wallet infrastructure service.
The arrangement also requires Binance to undertake additional promotional activities for USDC across its platform. The agreement extends the companies’ existing relationship while establishing new terms for incentives and USDC-related activities.
Circle’s filing said the September 17 agreement replaces the previous arrangements between the companies. Those agreements were signed in November 2024 and August 2025, respectively.
The financial terms of the new arrangement link Circle’s incentive payments to USDC held through its Modular Smart Contract Wallet infrastructure service, creating a direct connection between the incentives and USDC balances within that infrastructure.
Binance Acquires Circle Shares
Separately, Binance completed its $100 million purchase of Circle stock on September 17. The exchange acquired 1,237,011 Class A common shares at $80.84 each, with the discounted purchase price resulting in the total investment disclosed by Circle.
The transaction is no longer pending and has closed, according to the filing.
The shares are generally subject to a two-year transfer restriction. Circle’s filing also provides for certain early termination provisions and exceptions to that restriction.
The equity investment and the new commercial agreement were both entered into on the same day, giving Binance a direct equity position in Circle alongside the expanded USDC partnership.
Partnership Replaces Earlier Agreements
The new five-year arrangement formalizes the next stage of the companies’ USDC relationship after agreements signed less than two years earlier.
For Circle, the agreement establishes monthly incentive payments based on USDC held through its wallet infrastructure service, while Binance has committed to additional promotional activity for the stablecoin on its platform.
The agreement took effect on September 17, the same date Binance completed its purchase of Circle shares. Circle disclosed the details in its September 22 Form 8-K filing.
Writer: Victoria HaleTechnology & Blockchain WriterVictoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.She prioritises clarity and accuracy when explaining technical developments to a general audience.
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