Binance has invested $100 million in USDC stablecoin issuer Circle and entered into an expanded five-year agreement to promote USDC on the exchange. On September 17, Circle issued shares to Binance in a private placement.

Private Placement: 1,237,011 Shares at $80.84 Each

Circle issued 1,237,011 Class A common shares to Binance at $80.84 per share in the private placement, according to a document filed with the SEC on Tuesday. The price reflected a discount to the market price prior to the deal's closing. CRCL shares on the NYSE rose more than 1.3% in premarket trading on Tuesday after closing at $94.29 on Monday.

Monthly Payments for USDC and Platform Promotion

Under the agreement, Circle will pay Binance a monthly fee based on the volume of USDC held through Circle's Modular Smart Contract Wallet infrastructure. Binance, in turn, has committed to additional activities to promote USDC on its platform.

Up to Two-Year Lockup and Voting Rights

Binance has agreed not to sell, transfer, or pledge the Circle shares it receives for up to two years. The restriction may be lifted earlier under certain early termination conditions of the commercial agreement. During the lockup period, Binance retains voting rights on the shares.

Deal Replaces 2024 and 2025 Agreements

The new agreement replaces the companies' previous arrangements from November 2024 and August 2025. The current agreement is set for five years, with either party able to terminate early under specified circumstances.