Binance Invests $100 Million in Circle to Expand USDC

Binance invested $100 million in Circle Internet Group on September 17, purchasing approximately 1.24 million Class A shares at $80.84 per share. The equity deal includes a lockup period of up to two years.

As part of the agreement, the two companies entered a five-year commercial partnership. Binance will promote the USDC stablecoin on its platform using Circle's Modular Smart Contract Wallet. In return, Circle will pay Binance a monthly incentive fee based on the USDC balances held within that infrastructure.

The partnership aims to increase the international presence of USDC to better compete with Tether's USDT, which has a circulation of roughly $183 billion compared to USDC's $75 billion. Circle CEO Jeremy Allaire stated the move leverages the Binance platform to expand dollar access and support savings and investment in global emerging markets.