Stablecoin Reserves on Binance Hit $42 Billion as Crypto Risk Appetite Revives Amid US-China Trade War Easing

Binance exchange is once again grabbing market attention as surging stablecoin activity spurs enthusiasm on the trading platform. According to data shared today by market analyst Satoshi Club, stablecoin supply on the Binance exchange has climbed to a new ATH of $42 billion as financial applications around stablecoins on the crypto exchange keep surging. The record highlights rising investor confidence in the Binance exchange, strengthening its dominance in the stablecoin sector.

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Investor Confidence Drives Binance Dominance

As reported in the data, in the last two months since August, the supply of ERC-20 stablecoins on the Binance exchange has increased by $10 billion, climbing from $32 billion to $42 billion. This record marks the highest level that ERC-20 stablecoin reserves have ever reached on Binance.

This increase means that crypto investors continue to pump funds into the virtual currency market through stablecoins using Binance as the main gateway. Prominent ERC-20 tokens like USDT, USDC, and USDe control over the stablecoin market, with market analysts believing that these massive inflows of capital into the market could be the driver that fuels the next wave of crypto growth.   

Stablecoins have silently become crypto’s financial support system, serving as the liquidity engine behind every on-chain market. Last month’s report published by market analyst CryptoQuant disclosed that stablecoin reserves on centralized cryptocurrency exchanges reached an ATH of $68 billion in early September.  Out of the $68 billion, the Binance exchange controlled $40 billion. This dominance shows Binance’s unrivalled role as the international gateway for stablecoin financial applications, enabling huge transaction volumes and serving as a key avenue for on-chain trades.

Recovery Returns to Crypto Market

Typically, whenever stablecoin reserves surge, it’s an indicator that investors’ risk appetite is resurging. Investors normally hold stablecoins as a liquid asset, ready to be used for new opportunities across crypto assets. The latest massive inflows signal that smart money is preparing to enter to crypto markets that offer better yields and growth.

The $42 billion record on Binance’s stablecoin liquidity is not just an occasion; it is a macro indicator. According to fresh data reported today by CMC, the wider crypto market is seeing a rebound as the US and China moved to ease the ongoing trade conflict.

Yesterday, on Sunday, October 12, 2025, the Chinese and US governments issued statements indicating that both administrations are willing to engage in negotiations. The announcements gave global markets optimism that the tariff trade war will calm down and macroeconomics stabilize.