Circle said Binance has bought $100 million of its Class A common stock and signed a new five-year commercial agreement aimed at broadening USDC distribution, particularly in emerging markets. The move gives Circle a deeper relationship with the world’s largest crypto exchange as it tries to expand USDC’s reach against larger rival Tether.

The stock purchase and renewed partnership were disclosed by Circle on Sept. 22, following a private placement that closed on Sept. 17. The arrangement replaces earlier agreements between the companies and adds an equity stake to a distribution partnership that began in late 2024.

Equity deal adds a new layer to the partnership

Circle’s SEC filing shows Binance purchased 1,237,011 Class A shares at $80.84 each, raising $100 million for the stablecoin issuer. Circle said the purchase price was below its market price before the transaction closed.

Binance keeps the voting rights tied to those shares, but it also accepted limits on selling, transferring, pledging or hedging them for as long as two years, subject to specified exceptions. That structure means the latest agreement is not only about token distribution on an exchange, but also about Binance taking a direct ownership position in Circle.

USDC activity on Binance had already been growing

Market data cited by CoinDesk suggests Binance had become an increasingly important venue for USDC even before the latest agreement was signed. Kaiko data showed the number of USDC-quoted spot markets on Binance rose from 140 when the original partnership started to 329 more recently.

The same data indicated monthly USDC trading volume on Binance increased from roughly $20 billion to $40 billion before the initial deal to more than $80 billion in recent months. CoinDesk also cited Kaiko figures showing Binance handled about $5 billion to $10 billion of USDC spot trading per day during 2026.

Kaiko’s head of research, Anastasia Melachrinos, said that level of activity was around 10 to 20 times what many rival venues recorded. At the same time, the increase in listed pairs does not mean each market remains live permanently, as Binance regularly delists pairs that no longer meet its liquidity or volume standards.

How the new commercial agreement works

Under the renewed agreement, Circle will pay Binance a monthly incentive tied to a percentage of qualifying USDC held through Circle’s Modular Smart Contract Wallet infrastructure service. Binance, in turn, agreed to carry out activities promoting USDC on its platform.

Either side can end the agreement before the five-year term expires if certain specified conditions are met. Circle said the new arrangement supersedes agreements signed in November 2024 and August 2025.

Analysts cited by CoinDesk said Binance could help put USDC in front of more users, especially in markets where dollar stablecoins are widely used for crypto trading and payments. The emerging-markets focus is central to the renewed distribution push.

Circle is still chasing a much larger Tether

Despite the stronger Binance tie-up, USDC remains far smaller than Tether’s USDT by market value. CoinGecko data cited in the report put USDC’s market capitalization at about $75.3 billion on Sept. 23, up from $73.6 billion on Sept. 17.

USDT was reported at roughly $183.8 billion on Sept. 26, with daily trading volume near $69 billion, and its market capitalization had stayed close to $183 billion for most of September. Gravity Team CEO Martins Benkitis told CoinDesk that Binance gives Circle both an incentive structure and a distribution route to lift USDC usage, but he also said USDT’s entrenched liquidity and user habits make any rapid shift in market share unlikely.

Analysts described the Binance relationship as a source of competitive pressure rather than an immediate replacement for existing stablecoin networks. Circle has also pursued other exchange relationships, including an expanded partnership with OKX covering spot, margin and futures trading in USDC.

Broader payments and infrastructure plans continue

The Binance investment comes as Circle pushes USDC into additional infrastructure and payments use cases. On Sept. 16, Circle launched the mainnet of Arc, a blockchain that uses USDC to pay transaction fees. The network debuted with institutional validators including BlackRock, Visa, Mastercard, DTCC and Standard Chartered.

Earlier in the month, on Sept. 8, Circle also announced an agreement to acquire Singapore-based cross-border payments company Tazapay. Circle said the deal would add links to more than 60 banks and fintech firms and payout capabilities across more than 100 markets, though the acquisition is expected to close only in 2027, subject to regulatory approvals.

For now, the confirmed next step is the execution of the new Binance agreement, which Circle says will extend USDC distribution through Binance’s global user base over the next five years while the company continues building out payments and settlement services.

Source: crypto.news