Binance buys $100 million Circle stake in five-year USDC deal

Binance bought $100 million of Circle shares as the companies signed an expanded five-year partnership focused on promoting Circle's USDC stablecoin. Circle issued Binance 1.24 million Class A shares at $80.84 each in a private placement that closed Sept. 17, according to an SEC filing published Tuesday. Circle said the price represented a discount to its market value before the sale. Binance cannot sell, transfer or hedge the shares for as long as two years, subject to certain exceptions, but it retains voting rights. Under the expanded partnership, Circle will pay Binance a monthly incentive fee calculated as a percentage of USDC held through Circle's Modular Smart Contract Wallet service. Binance will carry out promotional activities for USDC on its platform.