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

BlockBeats News, April 2nd, According to the IPO S-1 filing submitted to the U.S. Securities and Exchange Commission (SEC) by stablecoin issuer Circle, in November 2024, Binance became the first approved participant in the stablecoin ecosystem protocol. Under the partnership agreement, Binance is required to promote USDC on its platform and hold a certain amount of USDC in its treasury reserve.

Circle paid Binance a one-time prepayment fee of $60.25 million and agreed to pay monthly incentive fees based on Binance's USDC balance. The incentive fee is only paid when Binance holds at least 1.5 billion USDC, while Binance commits to holding 3 billion USDC (with exceptions under specific circumstances).

The partnership is divided into two parts: market promotion and treasury reserve, both lasting for a period of two years. If Binance terminates the market promotion agreement early, it is still required to make reduced rate payments and fulfill promotional obligations for one year. Both parties have the right to terminate the agreement early under specific circumstances.