Binance invests $100 million in Circle to challenge Tether in Europe with USDC

Binance has invested $100 million in Circle, the issuer of USDC, to drive the stablecoin’s use in Europe and emerging markets. The five‑year partnership includes a private placement of shares and an unprecedented commercial agreement. It comes as USDC still holds less than half the volume of USDT, while the EU’s MiCA regulation demands greater transparency from stable‑coin issuers.

What has happened

Binance bought a $100 million stake in Circle by issuing 1.24 million class‑A shares at $80.84 each in an unregistered private placement in September 2026 [h1][h2]. The shares cannot be sold, transferred or hedged for at least two years, except in limited cases, according to the agreement’s terms [h3]. In return, Circle will pay Binance a monthly fee linked to the USDC balances held in its modular smart‑wallet infrastructure [h4]. The pact runs for five years and can be terminated early under specific conditions [h5].

The deal replaces two earlier agreements signed in November 2024 and August 2025, consolidating a collaboration first announced by Binance and Circle in December 2024 at Abu Dhabi Finance Week [h6][h11]. Circle launched its Arc network (Layer 1) a week before the announcement, using USDC as the gas token – a strategic move to position the stablecoin in decentralised transactions [h10].

Why it matters

USDC has $75 billion in circulation, while USDT (Tether) holds around $183 billion according to CNBC [h9]. The Binance‑Circle deal could speed USDC’s expansion outside the United States, where MiCA requires more transparency and backing for stable‑coin issuers. Binance, in turn, strengthens its position as a platform with one of the most widely used dollar‑stablecoin wallets, according to its own statements [h14].

The partnership is not only financial: Binance has pledged to promote USDC on its global platform, which could boost adoption in digital payments, cross‑border trade and innovative products. Circle plans to use USDC to broaden dollar access, support savings and investment products, and reach emerging markets where the digital dollar still has growth potential [h15].

What the parties say

Jeremy Allaire, CEO of Circle, said the two see "incredible opportunities" to leverage USDC, expand dollar access, support savings and investment with innovative digital‑asset products, and reach people and businesses in emerging markets worldwide. Richard Teng, co‑CEO of Binance, added that a stable, reliable digital dollar should not be a privilege but available to anyone with a phone.

Circle highlighted that the agreement reinforces its position as a stable‑coin issuer with greater transparency and regulatory backing – crucial in a market where USDT dominates with $183 billion in circulation. Binance underscored its commitment to building a more inclusive and transparent digital economy, aligning its strategy with USDC’s global expansion.