Circle defends USDC economics as rivals offer partners bigger revenue share

USDC economics — Circle is defending the economics of its USDC stablecoin as competitors, including one backed by its key partner Coinbase, court businesses with offers of a larger share of reserve income.

In a blog post, Circle Chief Commercial Officer Kash Razzaghi detailed that the company retained roughly 7 cents in net profit for every dollar of revenue in the first half of 2026. The disclosure follows the launch of rival networks like Open USD, which is backed by Coinbase and designed to pass reserve income to partners after a management fee.

Razzaghi argued that Circle’s revenue must fund critical operations beyond distribution, including redemption services, compliance, and maintaining liquidity. He emphasized that standard USDC redemptions remain free for users. The post highlights the intensifying competition in the stablecoin sector, where distribution partnerships are crucial for adoption.

Coinbase, as Circle’s largest USDC partner, now supports a competing model that could pressure Circle’s business terms. The move signals a potential shift in how stablecoin issuers structure partnerships and share the revenue generated from the reserves backing their tokens.