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

ChainCatcher news indicates that according to the IPO S-1 filing submitted by stablecoin issuer Circle to the U.S. Securities and Exchange Commission (SEC), Binance has become the first approved participant under the stablecoin ecosystem protocol in November 2024. Under the cooperation agreement, Binance is required to promote USDC on its platform and hold a certain amount of USDC in its financial reserves.

Circle pays Binance a one-time upfront fee of $60.25 million and agrees to pay monthly incentive fees based on the USDC balance held by Binance. The incentive fees are only paid when Binance holds at least 1.5 billion USDC, while Binance commits to holding 3 billion USDC (with exceptions in specific circumstances).

The cooperation is divided into two parts: marketing promotion and financial reserves, both of which are for a two-year term. If Binance terminates the marketing promotion agreement early, it is still required to fulfill one year of reduced rate payments and promotional obligations. Both parties may terminate the agreement early under specific circumstances.