Binance has acquired $100 million worth of Circle shares as part of a five-year agreement under which the exchange will promote Circle’s USDC stablecoin on its platform.
Circle issued Binance 1.24 million Class A shares at $80.84 each in a private placement closed September 17, according to an SEC filing published Tuesday. Circle said the price represented a discount to its market value before the transaction.
Binance is restricted from selling, transferring or hedging the shares for two years, subject to certain exceptions, while retaining voting rights.
The investment was completed alongside an expansion of the companies’ existing USDC partnership. Under the agreement, Circle will pay Binance a monthly incentive fee based on the amount of USDC held through Circle’s Modular Smart Contract Wallet service.
In return, Binance will conduct promotional activities for USDC across its platform under the five-year agreement.