Circle paid Binance $60.25 million to establish a two-year USDC promotion and holding partnership

On April 2nd, as per the IPO S-1 filing submitted to the U.S. Securities and Exchange Commission (SEC) by the stablecoin issuer Circle, in November 2024, Binance emerged as the first approved participant within the stablecoin ecosystem protocol. Under the partnership agreement, Binance is mandated to promote USDC on its platform and maintain a certain quantity of USDC within its treasury reserve. Circle made a one-time prepayment fee of $60.25 million to Binance and agreed to pay monthly incentive fees based on Binance's USDC balance. The incentive fee will only be paid when Binance holds at least 1.5 billion USDC, while Binance commits to holding 3 billion USDC (with certain exceptions in specific circumstances). The partnership is divided into two segments: market promotion and treasury reserve, both spanning a period of two years. If Binance terminates the market promotion agreement prematurely, it is still obligated to make reduced-rate payments and fulfill promotional obligations for one year. Both parties have the right to terminate the agreement prematurely under specific conditions.