Circle Defends USDC Revenue Model as Rivals Offer Bigger Partner Cuts

Circle, the issuer of the USD‑pegged stablecoin USDC, defended its profit‑sharing structure on Tuesday after rival stablecoin networks began courting its biggest partners with promises of higher payouts. The company said partners receive only seven cents of every revenue dollar, a figure that it argues reflects the cost of regulatory compliance, reserve management and ongoing development of the USDC ecosystem.

USDC’s growth and the stakes for partners

USDC has become one of the most widely used stablecoins, with the total value of assets under management surging to the multi‑trillion‑dollar range, according to various market trackers. Azat.tv reported a "$36 trillion USDC surge," underscoring the scale of transactions that flow through the token each year. Such volume makes the terms of revenue sharing a critical point of negotiation for exchanges, custodians and other service providers that integrate the stablecoin into their platforms.

Circle’s revenue split

Circle disclosed that its revenue model allocates roughly 7% of earnings to its network partners, leaving the remaining 93% to cover operational costs, reserve holdings and profit.

"Only seven cents of every dollar of USDC revenue goes to partners," the company said, citing its latest financial breakdown.

The firm argues that this split is necessary to maintain the high‑grade reserve backing and regular attestations that have distinguished USDC from competitors.

Rival stablecoins promise larger shares

Competing stablecoin projects are now positioning themselves as more lucrative alternatives for partners. Open USD, a newer network backed by Coinbase – the largest USDC partner – claims to pass reserve income directly to its partners after a modest management fee. CoinDesk highlighted that Coinbase is simultaneously supporting both USDC and Open USD, creating a potential conflict of interest as the exchange evaluates which model offers the best economics for its customers.

Other outlets, including Pluang and portalcripto.com.br, noted that rivals are courting partners with “bigger cuts,” suggesting that the market for stablecoin infrastructure is becoming increasingly competitive. These challengers argue that a higher share of reserve earnings can be reinvested by partners into product development, liquidity provision and user incentives.

Implications for the stablecoin ecosystem

The debate over revenue sharing comes at a time when regulators worldwide are scrutinizing stablecoins for transparency and consumer protection. Circle’s model, which emphasizes reserve safety and auditability, is designed to meet stringent compliance standards, a factor that may justify its lower partner payout according to the company.

Analysts say the emergence of alternative stablecoin networks could pressure incumbents like Circle to reconsider their fee structures, especially if major exchanges shift volume to higher‑return platforms. However, the entrenched trust in USDC’s reserve practices may offset the lure of higher partner earnings, at least in the short term.

As the stablecoin market matures, the balance between partner incentives and regulatory compliance will likely shape the competitive dynamics among issuers. Circle’s defense of its economics underscores the broader industry conversation about how to sustainably fund stablecoin operations while keeping fees attractive for the ecosystem’s critical partners.