Circle’s Deeper Binance Tie-Up Could Pose Major Threat to Tether

Circle’s expanded partnership with Binance could put pressure on Tether’s USDT, the world’s largest stablecoin.

Martins Benkitis, co-founder and chief executive officer of Gravity Team, told CoinDesk on September 26 that the Binance-Circle collaboration is clearly aimed at growing USDC through Binance’s user base and infrastructure.

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

Benkitis said the move would increase pressure on USDT, particularly in global trading and emerging markets, where the token has built a strong presence 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 first partnered in December 2024. Monthly USDC trading volume has also climbed to more than $80 billion from roughly $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 may widen further as Binance expands USDC’s presence in emerging markets.

Still, Benkitis said USDC is unlikely to displace USDT in the near 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.