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Circle says USDC partners get 59 cents of each revenue dollar

Circle says partners and transaction costs took 59 cents of each USDC revenue dollar in the first half, as rivals pitch businesses a larger share.

Merkle Street Newsroom#ba73f93 min read

Circle says USDC partners get 59 cents of each revenue dollar

Circle says it paid USDC distribution partners and transaction costs about 59 cents of each revenue dollar in the first half of 2026, as rivals pitch businesses a larger share of stablecoin income. The mechanics start with USDC reserves: Circle earns revenue on the assets backing the token, then shares reserve income with partners that bring USDC balances to their platforms. In an October 16 post, Circle chief commercial officer Kash Razzaghi said the partner share grows with the balances a partner attracts and holds.

That is a little like a shop paying more commission to the sellers who bring it more customers. The payment helps put USDC in wallets and exchanges, while Circle says the rest funds the banking, compliance and settlement systems needed to issue and redeem it.

Where did Circle’s first-half revenue go?

Circle reported about $1.4 billion in revenue for the first half of 2026. Its post detailing USDC’s economics says roughly $819 million went to distribution partners and transaction costs. Another $473 million, or about 34 cents per revenue dollar, went to licenses, bank relationships, settlement liquidity, compliance, product development and blockchain integrations. Circle said it retained seven cents per dollar as net profit.

The company did not break out how much of the $819 million went to partners and how much covered transaction costs. Unchained reported that Circle presented the figures as a response to newer issuers arguing that stablecoin issuers keep too much income and charge too much for redemptions. Circle did not name a competitor in its post.

How do USDC partners earn a share?

Partners that hold and grow USDC balances on their platforms receive a share of the reserve income those balances generate, according to Circle. Coinbase is its largest and longest-standing partner. Circle pointed to Coinbase’s second-quarter results, which showed average USDC held in its products reached $20 billion, up 44% year over year.

Circle also said Binance signed a five-year commercial agreement with it in September and invested $100 million. More than 150 other partners have an economic interest in USDC’s growth, Circle said. The company said USDC accounted for roughly 77% of global stablecoin transaction volume in June, up from 60% a year earlier.

What are rivals offering partners?

Some newer stablecoin proposals promise to pass more reserve income to participating businesses. Unchained’s report on Circle’s figures noted that Open USD, backed by more than 140 companies including Coinbase, Visa and Stripe, would give partners its reserve earnings minus a small management fee.

The difference is in how much income the issuer keeps to run the system. Circle argues that redemption liquidity, compliance and banking relationships have ongoing costs. It says every Circle customer can redeem USDC for free through standard bank rails, which typically settle within two business days. Near-real-time, free redemption is available to qualifying customers using Circle’s network and platform products. Circle says it keeps cash ready at partner banks to make those faster redemptions possible.

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