Circle pays millions for Binance distribution while its margins collapse
Circle and Binance signed a five-year USDC commercial agreement through September 2031, alongside Binance’s $100 million investment in Circle. Binance customer USDC balances rose from about $1.5 billion in October 2024 to $7.1 billion by September 2025, while USDT balances grew more slowly, narrowing the exchange’s USDT-to-USDC balance ratio from 14.3-to-1 to 4.5-to-1. Binance now holds nearly 10% of circulating USDC. The deal consolidates earlier agreements, but its incentive rates and minimum balance requirements remain undisclosed. Analysts say the partnership strengthens Circle’s distribution reach but leaves its profitability uncertain: prior agreements involved substantial payments to Binance, and Circle’s distribution costs are already a significant share of reserve income.
