Binance Invests $100 Million in Circle, Extends USDC Agreement

Binance Holdings Ltd. has invested $100 million in Circle Internet Group Inc., as the crypto companies extend an existing partnership.

The world’s largest crypto exchange and the stablecoin giant have struck a new five-year agreement, which will see Circle pay Binance a monthly fee to promote its stablecoin USDC.

The deal sees Circle doubling down on its strategy of working closely with crypto exchange heavyweights to boost usage of USDC, which is the world’s second largest stablecoin with a market value of about $75 billion. The company already works closely with Coinbase Global Inc., paying the US exchange a portion of interest generated from the stablecoins traded on its platform.

Circle first partnered with Binance in 2024, agreeing to pay the exchange a onetime fee of $60.25 million. Binance at that time said it would hold a portion of its treasury in USDC, according to a regulatory filing. In extending the arrangement, Binance will integrate USDC into existing and new savings and investment products, a spokesperson for the exchange said. Binance will also offer incentives such as lower fees on key USDC trading pairs.

“Together, we see incredible opportunities to leverage USDC,” Circle CEO Jeremy Allaire said in a statement.

Binance invested $100 million in Circle at $80.84 a share, a discount to market price. Circle’s stock rose as much as 3.3% to more than $97 during Tuesday morning trading in the US.