Circle says USDC partner payouts leave room to fund growth

USDC has long shared reserve income with the businesses that help distribute it.

Circle is now spelling out the split as rivals offer partners a larger share: in an October 16 post, chief commercial officer Kash Razzaghi said the company paid about $819 million of its roughly $1.4 billion in first-half 2026 revenue to USDC distribution partners and transaction costs. Circle’s account of USDC’s economics puts that at about 59 cents of each revenue dollar.

The argument matters because new stablecoin issuers are pitching partners on a larger share of reserve income. Circle says its own model already pays most revenue outward while keeping enough to pay for the services that support USDC’s use and redemption.

How much did Circle say it spent on the network?

Circle said it spent about $473 million, or 34 cents per revenue dollar, on licenses, banking relationships, settlement liquidity, compliance, new products and blockchain integrations. It reported seven cents of net profit per revenue dollar. The $819 million figure combines partner payouts with transaction costs; Circle did not disclose how much went to each.

Razzaghi argued that a stablecoin promising to distribute more must still fund those services. That is Circle’s case for retaining part of the income from the reserves backing USDC, rather than passing nearly all of it to distributors.

Which rival offer is putting the split in focus?

Circle did not name a competitor in its post. Unchained’s report on the announcement said Circle was responding to new issuers’ claims that stablecoin companies keep too much income and charge too much for redemptions. It connected that debate to Open USD, whose backers include Coinbase, Visa and Stripe, and whose model would give partners reserve earnings minus a small management fee.

Circle’s post says partner shares rise with the USDC balances they attract and hold. It cited Coinbase’s second-quarter average USDC balance of $20 billion in its products, up 44% year over year, and said more than 150 other partners have an economic interest in USDC’s growth.

What does Circle say partners get beyond reserve income?

Circle says all customers can redeem USDC for free over standard banking rails, which can take up to two business days. Eligible customers using its payments network and other platform products can qualify for free near-real-time redemption. Circle says it funds that speed by keeping cash with bank partners, where it earns less than it could on Treasuries.

Sources

• Circle’s account of USDC’s economics — circle.com
• Unchained’s report on the announcement — unchainedcrypto.com