Circle raises $100 million from Binance stake

The new arrangement replaces agreements struck in November 2024 and August 2025 and includes monthly incentive payments from Circle based on the amount of USDC held through its Modular Smart Contract Wallet infrastructure. Binance also agreed to undertake additional promotional activity for USDC on its platform, giving the stablecoin more visibility among traders and market-makers who route huge volumes through the exchange.

For Circle, the transaction does more than raise cash. It formalizes a commercial relationship with a dominant exchange that can help drive USDC balances, usage and fee-generating activity at a time when stablecoin issuers are racing to secure distribution and defend market share. For Binance, the stake aligns it economically with the growth of the token it is promoting, rather than leaving the exchange as a pure distributor.

The two companies said Binance cannot sell, transfer, pledge or otherwise encumber the shares for up to two years, though the lockup can end earlier if Binance exits the commercial agreement under certain conditions. Binance keeps voting rights during that period, preserving influence without near-term liquidity.

The deal comes as Circle pushes to broaden its product set, including the recent launch of Arc mainnet with USDC as the native gas token. Investors will now be watching whether the Binance partnership lifts USDC usage on the exchange and whether that translates into stronger circulation, more incentive expense for Circle and a larger role for USDC in crypto trading and payments over the next five years.