Circle's Binance Partnership Soars, But Margins Suffer

Circle's partnership with Binance has grown exponentially since their first agreement in November 2024. The companies have signed a new five-year commercial agreement, alongside Binance's $100 million equity investment in Circle.

The deal extends the relationship between the two giants and focuses on expanding USDC access, particularly in emerging markets.

Binance bought 1.237 million Circle Class A shares at $80.84 each, a 5% discount to Circle's Sept. 17 closing price.

The growth of USDC balances on Binance has far outpaced the total USDC supply. Customer USDC balances rose 376% to $7.13 billion, while USDT customer balances increased about 51% over the same period.