FinanceCircle's recent collaboration with Binance is expected to enhance USDC's presence in emerging markets, although analysts caution that Tether's liquidity advantage is still formidable.
New Five-Year Agreement Enhances USDC's Market Position
By Krisztian Sandor|Edited by Cheyenne LigonSep 26, 2026, 9:00 a.m. EDT3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on
Jeremy Allaire, Co-Founder, Chairman and CEO, Circle (CoinDesk)SummaryShow- Binance's $100 million investment provides Circle with a robust distribution channel in markets dominated by USDT, analysts noted.
- Since the initial partnership in 2024, USDC trading on Binance has seen significant growth, according to Kaiko data.
- Despite this, Tether retains a substantial advantage in local liquidity and established user behavior, which may slow any shift in market share, remarked the CEO of market maker Gravity Labs.
Circle's expanded relationship with Binance is poised to enhance USDC's USDC$0.9998 influence in both emerging markets and the global trading landscape, while also exerting some pressure on Tether's longstanding dominance in the dollar-pegged stablecoin sector.
In a strategic move, Binance invested $100 million in Circle CRCL$87.37·Market Closed shares and established a new five-year commercial agreement to promote USDC across its platform. This partnership not only grants Binance a stake in Circle's growth but also allows Circle to tap into one of the largest crypto exchanges worldwide.
“This optimizes the relationship and aligns Binance's interests with Circle's, similar to Circle's model with Coinbase,” said Owen Lau, an analyst at Clear Street, to CoinDesk.
Binance Emerges as a Key USDC Trading Venue
The initial partnership, announced in December 2024, has already transformed USDC trading dynamics on Binance.
When the collaboration began, Binance offered 140 spot markets for USDC trading; this number has now increased to 329, according to data from Kaiko. This growth is in stark contrast to the slower expansion from 39 markets in 2021 to 140 by late 2024.
Trading pairs quoted in USDC on Binance (Kaiko)Moreover, Binance's monthly USDC trading volume has nearly doubled, soaring from a range of $20 billion to $40 billion prior to the partnership to consistently exceeding $80 billion now.
“In 2026, Binance has maintained a significant share of USDC spot trading, processing between $5 billion and $10 billion in daily volume, which is approximately 10 to 20 times more than most other platforms that typically handle less than $0.5 billion,” explained Anastasia Melachrinos, head of research at Kaiko.
Other major exchanges have largely remained stagnant in their USDC trading volumes, indicating that the growth is primarily driven by Binance itself.
“As Binance continues to expand USDC's reach in emerging markets, its dominance is likely to further increase,” Melachrinos added.
Increasing Competition for Tether
With a market cap of around $74 billion, USDC is currently the second-largest U.S. dollar stablecoin, trailing Tether's approximately $140 billion USDT.
“Both parties have a clear incentive to leverage Binance's user base and infrastructure to grow USDC,” stated Martins Benkitis, co-founder and CEO of Gravity Team.
Circle is also diversifying beyond stablecoin issuance. Its Circle Payments Network aims to connect financial institutions for stablecoin transactions, while its recently announced $400 million acquisition of Tazapay, based in Singapore, would enhance its local banking connections and payment infrastructure in emerging markets.
This strategy comes at a time when competition in the stablecoin arena is intensifying, with banks and payment firms like Visa, Mastercard, and Stripe expanding into stablecoin payment systems and infrastructure.
Circle also maintains a close commercial partnership with Coinbase, which distributes USDC and shares in its economic model. Lau indicated that the Binance agreement does not provide Circle with additional leverage over Coinbase, given that Circle recently renewed its partnership with them.
While Binance can increase USDC's visibility to more users, Tether's established trading and payment network will make rapid market share shifts challenging.
“This adds more pressure on USDT, especially in global trading and emerging markets where it has solidified its position over many years,” Benkitis noted. “However, distribution alone won’t lead to immediate changes; USDT enjoys extensive trading pairs, local liquidity, and, crucially, established user habits.”
StablecoinsCircleBinanceTetherRelated AssetsUSDC$0.990.0026%Related StocksMarket ClosedCircle Internet Group$87.37-6.05%Latest Crypto News- 1Bitget hacker moves $83 million in stolen XRP that Ripple cannot freeze1 hour ago
- 2Bitcoin could soon get Zcash-style 'shielded' privacy without changing its rules2 hours ago
- 3Solana’s 150-millisecond settlement upgrade reaches second public test network9 hours ago
- 4XRP Ledger’s Batch upgrade slips to Oct. 9 after validator support resets9 hours ago
- 5U.S. SEC's steadiest crypto advocate, Hester Peirce, to depart next week15 hours ago
- 6Another appeals court rules against prediction market provider Kalshi, says sports contracts are subject to state regulations16 hours ago
- 7Blockchain Association sees leadership shift shortly after crypto Clarity Act fizzles17 hours ago
- 8Circle and Tether step in to freeze hacker wallet after massive Bitget crypto heist23 hours ago
- 9Tokenization is moving faster than Washington23 hours ago
- 10Tether confirms minimal EQIBank exposure following $89M US asset seizure23 hours ago
The Definitive Stablecoin Landscape Series: Asia Pacific
The Definitive Stablecoin Landscape Series: Asia Pacific
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
By CoinDesk ResearchSep 15, 2026Commissioned byRippleAs stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
Why it matters:
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
View Full ReportMore From Finance