Binance buys $100 million in Circle shares to boost USDC adoption

Binance announced on Tuesday that it is investing $100 million in Circle, the issuer of the USDC stablecoin, as part of a new five-year agreement designed to broaden the token's adoption worldwide. Under the terms of the pact, Binance purchased ordinary shares in Circle, making the exchange a part-owner of the company. The shares were acquired at a 5% discount, with Binance agreeing not to sell or transfer them for a period of up to two years.

The move significantly deepens a strategic relationship first established in December 2024. Circle will provide the underlying technology, while Binance intends to leverage its global user base to drive USDC usage, with a specific focus on developing markets. Circle CEO Jeremy Allaire stated that the partnership presents opportunities to leverage USDC to expand dollar access, while Binance co-CEO Richard Teng described the investment as reflecting the exchange's long-duration conviction in Circle.

The deal arrives as stablecoins experience rapid growth following a more favorable regulatory environment. These tokens, which have existed for over a decade but expanded significantly in the last two years, are designed to maintain a steady value by linking to government-issued currencies such as the U.S. dollar. According to data from DeFiLlama, the sector's combined value has climbed above $306 billion since the passage of the Genius Act in 2025, which established a federal framework for stablecoins.

Circle is currently one of the largest regulated stablecoin companies in the United States. Its USDC token holds a market capitalization of nearly $76 billion, positioning it as the second-largest stablecoin after Tether's USDT, which has a market cap of roughly $183 billion. USDT is used almost entirely in overseas markets.

The current collaboration marks a distinct reversal from the contentious rivalry between the two firms just a few years ago. In late 2022, Binance cut off support for USDC trading and automatically converted customers' balances into BUSD, its own custom digital dollar issued by Paxos. At the time, Circle publicly questioned the decision, though Allaire later downplayed its effects on social media.

The conflict ended in February 2023 when the New York Department of Financial Services ordered Paxos to stop minting BUSD due to concerns regarding its oversight of the relationship with Binance. Paxos subsequently terminated its tie-up with Binance, prompting the exchange to phase out its BUSD products. About a year after that order, the two rivals publicly confirmed their renewed cooperation.