Binance invested $100 million in Circle through a private placement on September 17 and entered into a five-year agreement to expand the use of USDC on the exchange.

Binance Acquires 1,237,011 Circle Shares at $80.84 Each

According to a filing with the U.S. Securities and Exchange Commission, Circle issued Binance 1,237,011 Class A common shares at $80.84 per share. The price was below market value at the time the deal closed. CRCL shares rose following the announcement.

Five-Year Commercial Agreement to Expand USDC

The investment is accompanied by a broader commercial arrangement involving USDC. Circle will pay Binance a monthly incentive fee, calculated based on the volume of USDC held through the Modular Smart Contract Wallet infrastructure on the exchange.

Two-Year Lockup and Retention of Voting Rights

Binance is restricted from selling, transferring, pledging, or otherwise disposing of the acquired Circle shares for up to two years, although the lockup may end earlier under certain termination conditions. During the lockup period, Binance retains voting rights for these shares.