Circle Fires Back: Why USDC's 7-Cent Profit Is Fair as Rivals Lure Partners

Circle Defends USDC Economics

Circle, the issuer of the USDC stablecoin, is pushing back against rivals that offer partners a larger share of reserve income. In a blog post on Friday, Chief Commercial Officer Kash Razzaghi outlined the company's economics, revealing that Circle kept about 7 cents of net profit for every dollar of revenue in the first half of 2026.

The Numbers Behind the Dispute

During that period, Circle generated $1.4 billion in revenue, but $819 million went to distribution and transaction costs—primarily payments to partners like Coinbase. The remaining $473 million covered compliance, liquidity, and product development, including $214 million in stock-based compensation.

This disclosure comes amid growing competition from platforms that distribute a larger share of reserve income to partners. Open USD, a rival network backed by Coinbase, Stripe, and BlackRock, launched in June and allows businesses to mint and redeem stablecoins without fees, passing reserve income (minus a management fee) to participants. Another competitor, the Paxos-led Global Dollar Network (USDG), also shares reserve income.

Circle's Defense

Razzaghi emphasized that the costs of redemption, compliance, and resilience don't disappear just because an issuer chooses not to charge for them. He argued that Circle's model ensures these critical functions are funded.

Circle also highlighted that standard USDC redemptions remain free and typically settle within two business days. Qualifying platform customers and payment flows through Circle Payments Network can access near-real-time redemptions at no cost.

Expanding Partnerships

Circle is not standing still. In September, Binance bought a $100 million stake in the firm as part of a five-year deal that includes a fee tied to USDC held through Circle's wallet service. This move aims to secure additional distribution partners and strengthen USDC's position.

As the stablecoin landscape heats up, Circle's ability to balance partner incentives with sustainable economics will be key to maintaining USDC's dominance.