Binance Locks In $100M Circle Stake With Five Year USDC Deal

Circle Internet Group disclosed in a regulatory filing that Binance purchased $100 million worth of its stock and entered a new five-year agreement to promote USDC. The transaction closed on September 17, establishing a long-term commercial link between the two firms. The immediate catalyst is the formalization of this relationship, which supersedes prior deals from November 2024 and August 2025. For $BNB holders, the news signals a deeper integration of stablecoin infrastructure into the exchange's ecosystem. The next confirmable milestone is the execution of monthly fee payments tied to USDC balances held through Circle's Modular Smart Contract Wallet infrastructure.

The numbers behind the deal are specific and attributed to the filing. Binance paid $80.84 per share for 1,237,011 shares of Circle's Class A common stock. This price point was characterized in the filing as below the market rate at the time of closing. According to Unchained Crypto, the price was roughly 5% below Circle's September 17 closing price of $85.09. The commercial arrangement involves Circle paying Binance a monthly fee calculated as a portion of USDC balances held via the Modular Smart Contract Wallet service. In exchange, Binance promotes USDC on its platform. Either party can terminate the agreement early under specified circumstances. The new five-year term replaces a previous two-year deal that included a $60.25 million upfront payment to Binance.

Lock-Up and Governance

The filing outlines strict conditions for Binance's new holdings. Binance is prohibited from selling, pledging, or hedging its shares for two years from the closing date. This restriction remains in effect until the company exits the commercial deal under specified conditions. Standard carve-outs cover affiliate transfers and legally mandated disposals. Despite the lock-up, Binance's voting rights on these shares remain intact throughout the period. Richard Teng, co-CEO of Binance, stated that the investment represents long-duration conviction. He noted that a stable digital dollar should be available to anyone with a phone, not just a privilege. Jeremy Allaire, Circle's CEO, said the pair sees opportunities to expand dollar access and support savings in emerging markets. Circle stock gained close to 2% in premarket trading Tuesday. USDC's total market cap stands at roughly $75 billion. The setup from here relies on the throughput of USDC balances within the Modular Smart Contract Wallet infrastructure to drive the monthly fee calculations. What to watch next is the regular reporting on these balances and any changes to the commercial terms.