Circle defends USDC economics as stablecoin rivals court its partners with bigger cut
- Circle said it kept about 7 cents of profit per revenue dollar in the first half of 2026, after $819 million of $1.4 billion went to distribution and transaction costs.
- Coinbase, Circle’s largest USDC partner, also backs Open USD, a rival network that passes reserve income to partners after a management fee.
- Circle argued reserve income must also fund redemption, compliance and liquidity, and says standard USDC redemptions remain free.
Stablecoin issuer Circle CRCL$82.25·Market Closed is defending its business model as Coinbase, its largest distribution partner, backs a rival that aims to give businesses more income from stablecoin reserves.
In a blog post on Friday, Chief Commercial Officer Kash Razzaghi wrote that Circle kept about 7 cents in net profit for each dollar in revenue made during the first half of 2026. The firm brought in about $1.4 billion, while distribution and transaction costs totaled $819 million.
The post puts the figures at the center of a dispute over who gets the interest earned on assets backing stablecoins.
Circle said the remaining $473 million covered compliance, liquidity and product development. That figure also included about $214 million in stock-based compensation and related costs.
Coinbase is Circle’s largest USDC partner, but is also a backer of Open USD, along with Stripe and BlackRock. Open USD, unveiled in June, aims to let businesses mint and redeem stablecoins without fees, while passing off reserve income minus a management fee to participants.