Circle says USDC reinvestment leaves 7 cents per revenue dollar

Circle has laid out how it divides USDC revenue as Coinbase, its largest USDC partner, backs a rival stablecoin network that plans to pass reserve income to participants. In its report on Circle’s defense of its USDC economics, CoinDesk said the company reported about $1.4 billion in revenue in the first half of 2026. Circle said $819 million went to distribution partners and transaction costs, about $473 million went to infrastructure, compliance and product work, and it kept roughly seven cents in net profit per revenue dollar.

How does Circle share USDC revenue?

Circle earns revenue from the reserves backing USDC, then shares part of the economics with partners that help distribute the token. The company’s explanation of USDC’s economics says partners that hold and grow USDC balances on their platforms earn a share of the reserve income those balances generate. The larger the balance a partner brings, the greater its share.

Think of it as a shared till: reserve income comes in, and partners receive a portion tied to the USDC they help attract. Circle says it paid about 59 cents of each revenue dollar to distribution partners and transaction costs during the first half of 2026. It says roughly 34 cents went to licenses, banking relationships, liquidity, compliance, product investment and blockchain integrations, leaving seven cents as net profit.

What is Coinbase backing instead?

Coinbase is also backing Open USD, alongside Stripe and BlackRock. CoinDesk reported that the network aims to let businesses mint and redeem stablecoins without fees, while passing reserve income to participants after a management fee. That changes how the income from reserves is divided: the rival model advertises a larger flow to participants, while Circle says its own retained share funds the systems needed to issue, redeem and support USDC.

Circle did not name Open USD in its post. It argued that the costs of redemption, compliance and resilience remain even if an issuer pays out more of its economics. The competing claims therefore turn on what businesses receive and what infrastructure the issuer funds.

What do USDC users pay to redeem?

Circle says standard USDC redemptions are free for its customers and typically settle within two business days. Eligible customers using Circle Payments Network or Circle Platform services can qualify for free near-real-time redemption, according to the company. It says that faster service requires cash held with bank partners so funds are ready when a redemption is confirmed.

The dispute matters because distribution partners can help a stablecoin reach more wallets, exchanges and payment services, while redemption and compliance costs affect how reliably the issuer can convert tokens back into dollars. Circle’s figures set out its case: partner payments, infrastructure spending and profit all come from the same revenue pool. Coinbase’s support for Open USD puts a competing split of that pool in front of businesses choosing which stablecoin network to use.

Sources and documents

• report on Circle’s defense of its USDC economics — coindesk.com
• explanation of USDC’s economics — circle.com