Circle commits $100M to Binance partnership as USDC balances surge
In brief
- Circle and Binance announced a five-year commercial agreement with a $100 million equity investment on September 22, 2025.
- USDC customer balances on Binance grew 376% from $1.5 billion (Oct. 2024) to $7.1 billion (Sept. 2025).
- Partnership replaces earlier agreements from November 2024 and August 2025, marking the third major expansion in under a year.
- USDC's Binance stablecoin share rose from 5% (July 2024) to 22% (July 2025), outpacing Tether's growth.
USDC's Binance Bet Intensifies
USDC customer balances on Binance grew from approximately $1.5 billion on October 1, 2024 to about $7.1 billion by September 1, 2025, representing roughly 376% growth. That expansion means USDC's share of global stablecoin supply held on Binance nearly tripled, from less than 4% at the start of the partnership to almost 10% by September 2025.
The growth substantially outpaced Tether's performance on the same platform. USDT customer balances increased about 51% over the period, compared with USDC's roughly 376% increase. This shift narrowed the ratio of USDT to USDC held by Binance customers from approximately 14.3-to-1 in October 2024 to 4.5-to-1 by September 2025.
Circle's regulatory filings reveal the scale of the shift. USDC represented 5% of stablecoins held on Binance on July 1, 2024, 10% by January 1, 2025, and 22% by July 1, 2025.
The Cost of Distribution
The partnership has not come cheap. Under the November 2024 agreement, Circle paid Binance a $60.25 million upfront fee and agreed to monthly incentive payments based on USDC held on the platform and in Binance's treasury. Those payments ranged from an annualized mid-double-digit to high-double-digit percentage of a fixed rate reset quarterly at a discount to three-month SOFR.
Binance also agreed to keep $3 billion of USDC in its treasury, with treasury incentive payments requiring at least $1.5 billion to remain there. When Circle expanded the relationship in August 2025, the incentives remained substantial—equal to a high-double-digit percentage of a fixed rate tied to three-month SOFR.
Locking in the Deal
Binance bought 1.237 million Circle Class A shares at $80.84 each, a 5% discount to Circle's September 17 closing price. The exchange agreed to a two-year restriction on selling, pledging, or hedging the shares.
The commercial agreement runs through September 2031, although either company can terminate it earlier under specified circumstances. The deal focuses on expanding USDC access, particularly in emerging markets, according to the companies' joint announcement.
