On April 2, according to the IPO S-1 filing submitted by stablecoin issuer Circle to the U.S. Securities and Exchange Commission (SEC), Binance became the first approved participant under the stablecoin ecosystem protocol in November 2024. According to the cooperation agreement, Binance needs to promote USDC on its platform and hold a certain amount of USDC in its fiscal reserves.

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

The cooperation is divided into market promotion and fiscal reserves, both with a two-year term. If Binance terminates the market promotion agreement early, it still needs to fulfill one year of reduced-rate payments and promotion obligations. Both parties can terminate the agreement early under specific circumstances.