Binance has injected $100 million into Circle Internet Group via a private placement of 1,237,011 Class A shares. The share transaction was priced at $80.84 per share and officially closed on September 17, 2026. This purchase price represents a discount to Circle’s prevailing market price. In response to news of the deal, CRCL shares on the NYSE rose more than 1.3% in premarket trading before closing at $94.29 on Monday.
Under the five-year contract, Circle agreed to pay monthly incentive fees to Binance. The payout amount is calculated directly from the volume of USDC held by Binance through Circle’s Modular Smart Contract Wallet infrastructure. This new agreement replaces two previous contract documents signed in August 2025 and November 2024. Notably, the 2024 contract contained a clause for a one-time upfront payment of $60.3 million from Circle to the exchange. Both parties also included the right to terminate the contract early if certain conditions are met.
An Old Model Changes Hands
Binance’s new position puts them in two seats at once: as a Circle shareholder and as a recipient of USDC distribution fees. This revenue-sharing pattern resembles the business model previously run by Coinbase. In the past, Coinbase received a half share of the interest on USDC reserves in return for growing the asset’s market share.
Despite securing a key role, Binance must comply with holding restrictions. The exchange is prohibited from selling, transferring, pledging, or hedging these Class A shares for a full two years from the transaction closing date. Throughout this lock-up period, Binance retains full voting rights to help shape the company’s business direction.
One Moment, Two Different Directions
The relationship between the two entities also extends to the infrastructure level. Arc, Circle’s new Layer 1 network that uses USDC as its gas token, launched publicly just one day before the equity deal was finalized. Binance immediately stepped in as one of the exchanges offering access to the new network.
However, disclosure documents revealed another reality unfolding in parallel. Details of the agreement emerged a day after Bloomberg reported that US federal prosecutors reopened an investigation into Binance regarding Iran sanctions issues. For market traders, the sequence of events underscored one reality: the crypto exchange’s capital expansion efforts must still navigate strict law enforcement scrutiny.
Reported via Cointelegraph.
Read also: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
