Circle paid Binance $60.25 million to support its two-year USDC promotion and holding cooperation

Odaily Planet Daily News Circle's IPO S-1 filing submitted to the U.S. Securities and Exchange Commission (SEC) shows that in November 2024, Binance became the first approved participant under the stablecoin ecosystem agreement. According to the cooperation agreement, Binance is required to promote USDC on its platform and hold a certain amount of USDC in its treasury reserves. Circle paid Binance a one-time upfront fee of US$60.25 million and agreed to pay a monthly incentive fee based on the USDC balance held by Binance. The incentive fee is only paid when Binance holds at least 1.5 billion USDC, and Binance promises to hold 3 billion USDC (exceptions may be made in certain circumstances). The cooperation is divided into two parts: marketing and treasury reserves, both of which are for two years. If Binance terminates the marketing agreement ahead of schedule, it will still have to fulfill one year of reduced rate payments and promotion obligations. The two parties may terminate the agreement ahead of schedule under certain circumstances.