Circle pays millions for Binance distribution while its margins collapse

Circle is doubling down on Binance after USD Coin (USDC) stablecoin customer balances on the exchange nearly quintupled since their first agreement.On Sept. 22, the companies announced a new five-year commercial agreement alongside Binance’s $100 million equity investment in Circle, extending a relationship that has turned the world’s largest crypto exchange into one of USDC’s most important distribution channels.The agreement focuses on expanding USDC access, particularly in emerging markets, and replaces arrangements signed in November 2024 and August 2025.Binance bought 1.237 million Circle Class A shares at $80.84 each, a 5% discount to Circle’s Sept. 17 closing price, and agreed to a two-year restriction on selling, pledging, or hedging the shares. The commercial agreement runs through September 2031, although either company can terminate it earlier under specified circumstances.The longer commitment follows a sharp expansion in USDC’s presence on Binance. Customers held about $1.5 billion of USDC on Oct. 1, 2024, shortly before Circle entered into its original Binance agreement in November.Binance’s latest Sept. 1 Proof-of-Reserves snapshot shows customer USDC balances at abo...