Binance Buys $100 Million Circle Stake in Five-Year USDC Distribution Deal
Binance purchased a $100 million equity stake in Circle on September 17, 2026, acquiring approximately 1,237,011 Class A shares at $80.84 per share in a private placement at a 5% discount to the prevailing market price, paired with a five-year commercial agreement that replaces two prior short-term deals. The shares carry a lock-up of up to two years prohibiting sale, transfer, pledge, or hedge, and the lock-up is tied to the duration of the commercial arrangement. Under the agreement, Circle pays Binance a monthly incentive fee structured as a percentage of USDC held in Binance's Modular Smart Contract Wallet, while Binance commits to actively promoting USDC on its platform; either party may terminate early under specified conditions. Circle co-founder and CEO Jeremy Allaire said the real asset Binance is buying is distribution reach into the fastest-growing crypto markets, while Binance co-CEO Richard Teng called the $100 million investment and five-year commitment a long-duration strategic bet. Circle's existing USDC supply sits at roughly $60 billion, and the deal is designed to close the gap with Tether's USDT in emerging markets ahead of the GENIUS Act enforcement cliff on January 18, 2027, which will require stablecoin issuers operating in the United States to maintain 1:1 reserves, submit to monthly attestations, and comply with federal oversight.
SoFi Bank Enables Stablecoin Settlement Across $25 Billion Card Portfolio
SoFi Technologies said its bank has begun using stablecoins to settle transactions across its Mastercard card network, making SoFi Bank's entire $25 billion card portfolio eligible for settlement through SoFiUSD, the company's stablecoin. Mastercard is supporting the payment infrastructure behind the program. The arrangement is designed to let participating merchants receive settlement funds in a SoFi Bank account and convert them to cash without requiring merchants to maintain stablecoin balances or build separate systems. SoFi said it is also in discussions with large U.S. merchants about additional stablecoin settlement arrangements. SoFi shares climbed about 1% Tuesday on the news, while Mastercard shares were up about 0.4% in premarket trading.
ECB Urges Brussels to Scrap MiCA Stablecoin Reserve Rule Tether Rejected
The European System of Central Banks has asked the European Commission to delete a MiCA rule that forces large stablecoin issuers to hold 60% of reserve funds in commercial banks, the same clause Tether refused an EU license over. The ESCB, which groups the European Central Bank with the national central banks of all 27 EU member states, filed its comments on Tuesday as part of the Commission's review of MiCA, the bloc's crypto rulebook. The filing argued that money swinging with token creation and redemption is not stable deposit money and that heavy redemptions could drain it from lenders overnight, so it wants a minimum share of reserves held in assets maturing within one to five working days. The same filing said regulators face material challenges enforcing the rules because non-compliant crypto firms still reach EU customers, and the ECB has separately warned that euro stablecoin expansion could squeeze bank lending. Under MiCA the deposit floors are tiered, with ordinary issuers required to keep 30% of funds in bank deposits and issuers the EU labels significant required to keep 60%. Tether, which issues USDT, the largest stablecoin, never sought the license, and chief executive Paolo Ardoino has argued since 2024 that the floor makes tokens less safe, noting EU deposit insurance stops at 100,000 euros. Revolut dropped USDT for Europe this year, and BeInCrypto reported in July that Circle was backing a MiCA rule change that could bring Tether back. The consultation closes on September 30, and the 30% and 60% floors remain law until EU lawmakers amend MiCA, with Tether still holding no EU authorization.
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