Binance invests $100 million in one-time rival Circle and expands its USDC partnership

Binance, the leading cryptocurrency exchange, has made a significant investment of $100 million in Circle, its one-time rival, and expanded their partnership to bolster the global presence of USDC, a stablecoin. The deal is part of a five-year agreement that aims to enhance the stablecoin's reach, particularly in developing markets, using Binance's extensive global user base.

As part of the investment, Binance acquired 5% of Circle's shares, becoming a part-owner of the company. The exchange is restricted from selling or transferring these shares for up to two years. Circle CEO, Jeremy Allaire, expressed optimism about the partnership, stating that together they see "incredible opportunities to leverage USDC to expand dollar access." Binance co-CEO, Richard Teng, echoed this sentiment, highlighting the "long-duration conviction" in Circle's investment.

The development comes amid the rapid growth of stablecoins, digital tokens pegged to the value of traditional currencies like the U.S. dollar. Over the past two years, stablecoins have witnessed a surge in value, reaching over $306 billion as of 2025, following the passage of the Genius Act, a federal law providing a regulatory framework for stablecoins.

Circle, one of the largest regulated stablecoin companies in the U.S., has a market capitalization of nearly $76 billion, making its USDC token the second-largest after Tether's USDT, which holds a market cap of around $183 billion.

This renewed partnership between Binance and Circle marks a stark contrast to their previous rivalry, which emerged in late 2022. Binance had ceased support for USDC trading at that time, steering users towards its own stablecoin, Binance USD (BUSD), issued by Paxos. Circle had publicly criticized this decision; however, Allaire later downplayed its impact.

The rivalry ended in February 2023 when the New York Department of Financial Services ordered Paxos to halt BUSD issuance due to concerns about its relationship with Binance. Paxos subsequently ended its partnership with Binance, leading Binance to wind down its BUSD support.