Stripe · Circle · Coinbase · CoinDesk
Circle defends USDC economics as stablecoin rivals court its joins forces with bigger cut
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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.
Key facts
- Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%
- 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
- 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
- Circle said the remaining $473 million covered compliance, liquidity and product development
Summary
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. 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.