Circle Defends USDC Economics as Rivals Offer Partners Reserve Income

Circle is defending its USDC business model as stablecoin competitors offer partners a larger share of reserve income. The debate intensified after Coinbase, Circle’s largest distribution partner, backed Open USD alongside Stripe and BlackRock. The competition centers on how issuers balance partner incentives, operating expenses and profitability. Circle Chief Commercial Officer Kash Razzaghi explained the company’s first-half 2026 financial figures on October 16. The revenues of Circle amounted to approximately $1.4 billion, with the sum of money paid to distributors and fees being $819 million. Also Read | Crypto Money Laundering Probe Leads to Chinese Suspect’s Arrest in Thailand According to Circle, 59 cents out of each revenue dollar was spent on distribution partners and fees.

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