Binance-Circle Partnership Expansion Seen Pressuring Tether

Circle’s deepening partnership with Binance could pressure Tether’s USDT, the leading stablecoin in the global market, CoinDesk reported on September 26.

Martins Benkitis, co-founder and chief executive of Gravity Team, told CoinDesk the Binance-Circle collaboration clearly aims to grow USDC through Binance’s user base and infrastructure.

Binance previously agreed to buy $100 million of Circle shares and signed a deal to expand USDC use and integration across its platform over the next five years.

Benkitis said that would put more pressure on USDT, particularly in global trading and emerging markets, where it has built a strong position over several years.

USDC trading on Binance is already rising rapidly. According to crypto data provider Kaiko, Binance’s USDC-based spot markets increased to 329 from 140 when the two companies began their first partnership in December 2024. Monthly USDC trading volume has also climbed to more than $80 billion recently from about $20 billion to $40 billion before the partnership.

Anastasia Melachrinos, Kaiko’s head of research, said Binance has consistently accounted for the largest share of USDC spot trading this year. That lead could widen further as Binance expands USDC’s presence in emerging markets.

Still, Benkitis said USDC would struggle to displace USDT in the short term. Expanding distribution alone will not change the market overnight, he added. USDT has deep trading liquidity and local liquidity, and users are already accustomed to using it.

USDC’s market capitalization currently stands at about $74 billion, roughly half of USDT’s approximately $140 billion.