Circle sells $100 million worth of CRCL shares to Binance at a discount as the pair expands its USDC deal.
Binance is now a shareholder of Circle. The stock market picked up $100 million worth of CRCL shares via a private placement, according to a SEC Filing Tuesdayand signed a new 5-year agreement to push USDC to its users, with a focus on emerging markets.
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What’s the scoop?
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The issue: Binance obtained approximately 1.24 million Class A shares at $80.84 apiece, a 5% discount to CRCL’s closing price. The sale closed on September 17. Binance is locked in for up to two years with no sales or hedging allowed, but it can still vote its shares.
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Payments: Circle will pay Binance a monthly fee tied to a share of the USDC that users park in wallets running on Circle’s Modular Smart Contract Wallet technology. This is the third USDC tie-up between the two since late 2024, replacing the two previous agreements, and both companies have escape routes if certain triggers occur.
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Big picture: Paying distributors to hold USDC is now the standard stablecoin strategy. Adding equity to the mix gives Binance a stake in Circle’s entire stack, Arc included, not just the token. The news comes days after Circle made its Arc L1 live on mainnet, and Binance co-CEO Richard Teng checked out Arc when announcing the investment.
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