How Binance Controls Two-Thirds of All Stablecoin Liquidity on Centralized Exchanges
FEBRUARY 17, 2026 – A recent study of market concentration showed Binance (one of the world’s largest cryptocurrency exchange) now holding over 60% of all stablecoin reserves on centralized trading platforms. This dominance shows a major consolidation of power and capital within the digital asset ecosystem.
According to market data firm CryptoQuant, Binance currently holds approximately $47.5 billion in the two leading stablecoins, USDT (Tether) and USDC (Circle). This staggering figure represents roughly 65% of all USDT and USDC held across centralized exchanges globally—a significant jump of 31% from just a year ago.
What Led To The Binance vs. The Rest Dominance?
The concentration of liquidity on Binance leaves its closest competitors far behind. The breakdown of stablecoin reserves among major exchanges illustrates the scale of Binance’s lead:
- Binance: 65% of total reserves (~$47.5 billion)
- OKX: 13% (~$9.5 billion)
- Coinbase: 8% (~$5.9 billion)
- Bybit: 6% (~$4 billion)
Within its own holdings, Binance shows a strong preference for Tether (USDT), which accounts for $42.3 billion of its stablecoin reserves, compared to just $5.2 billion in USDC. Over the past year, Binance has increased its USDT liquidity by approximately 36%, while its USDC holdings have remained largely unchanged.
What To Expect With The Consolidation
This massive consolidation of stablecoin reserves on a single platform is significant for several reasons.
Capital is Consolidating, Not Leaving
CryptoQuant’s marketing lead, Nick Pitto, interprets the data as a sign of market maturity, not weakness. “Capital isn’t rushing out of crypto right now; it’s consolidating, particularly on Binance,” he explained. This perspective is supported by the fact that stablecoin outflows from exchanges have slowed dramatically. Over the past month, withdrawals totaled about $2 billion, a sharp drop compared to the $8.4 billion in outflows seen at the start of the recent bear market.
Pitto notes that for the market to turn decisively bullish, these large reserves would need to be deployed into riskier assets like Bitcoin and Ethereum, signaling renewed trading activity and investor appetite.
Market Power and Influence
Binance’s dominant position gives it unparalleled influence over liquidity, trading pairs, and potentially even the pricing of assets. A large portion of global crypto trading activity flows through its order books, making its health and stability critical to the broader market. This concentration also raises questions about systemic risk—should any issue arise at Binance, the ripple effects across the entire crypto ecosystem would be severe.
How Stablecoins Got Widely Accepted
This global trend of stablecoin dominance is playing out vividly in Africa, where the technology is solving real-world problems.
Recent data shows Sub-Saharan Africa recorded a 52% year-on-year increase in crypto activity between July 2024 and June 2025, surpassing $205 billion in on-chain value. Stablecoins now represent more than 45% of the region’s total crypto volume, driven by their utility for cross-border trade and as a store of value in volatile currency environments.
Regulatory Clarity Fuels Adoption
Experts point to maturing regulations across the continent as a key driver. Developments like:
- CASP licensing in South Africa
- Kenya’s enactment of its VASP Act
- Nigeria’s SEC formalizing oversight frameworks
…have all contributed to rising confidence. This regulatory progress is turning stablecoins from a niche experiment into a mainstream financial tool.
The Merchant Perspective: Opportunity Meets Caution
Despite the macroeconomic trends, many African merchants remain hesitant to accept crypto payments directly.
Daniel Katz, co-founder of South African crypto payment firm Ezeebit, explains the paradox: while the ecosystem above them is highly active, merchants still worry about:
- Price volatility between the time of payment and settlement.
- Unclear responsibility for risk.
- Complex reconciliation if funds don’t arrive as expected in local currency.
- Regulatory uncertainty about where liability lies.
However, the infrastructure layer—payment service providers, platforms, and wallet companies—is rapidly building solutions. Large e-commerce platforms and high-end brands are beginning to accept crypto, slowly normalizing the practice.
In Summary
Binance’s commanding lead in stablecoin liquidity underscores a broader trend: capital is not fleeing crypto, but is being held in reserve on trusted platforms, waiting for clearer signals to deploy. For Africa, where stablecoin adoption is surging, the next two to three years will determine whether this consolidation translates into mainstream merchant adoption or remains a tool primarily for back-end value transfers.
As Jonathan Katz of Ezeebit puts it: “The debate for African merchants has now shifted from an ‘if’ to a ‘when’ question.”
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