CoinDesk
Circle kept about 7 cents in net profit for every dollar of revenue during the first half of 2026, according to Chief Commercial Officer Kash Razzaghi. The issuer generated about $1.4 billion in revenue, while distribution and transaction costs reached $819 million. Circle says the remaining $473 million supported compliance, liquidity and product development, including about $214 million in stock-based compensation and related costs.
Why it matters
The figures sit at the center of a growing dispute over who should receive the interest earned on assets backing stablecoins. Coinbase, Circle's largest USDC partner, also backs Open USD alongside Stripe and BlackRock. Open USD aims to let businesses mint and redeem stablecoins without fees while passing reserve income to participants after a management fee.
Circle did not name Open USD directly, but argued that reserve income must also cover redemption, compliance and resilience. Razzaghi wrote that those costs do not disappear when an issuer chooses not to pay them. Circle also said standard USDC redemptions remain free and typically settle within two business days.
Market impact
The competition puts pressure on Circle to defend USDC's economics while securing distribution. The firm said qualifying platform customers and payment flows through Circle Payments Network can access near-real-time redemptions at no cost. It has also been working to add partners, including a five-year arrangement tied to Binance's $100 million investment and USDC held through Circle's wallet service.
Open USD's OUSD token is live, while the Paxos-led Global Dollar Network offers another reserve-income-sharing model through USDG. The competing structures make partner economics, redemption speed and the cost of compliance increasingly important differentiators across the stablecoin market.
Frequently asked questions
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How profitable was Circle's USDC business in the first half of 2026?
Circle said it kept about 7 cents in net profit for each dollar of revenue. It generated about $1.4 billion in revenue during the period.
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What consumed most of Circle's revenue?
Distribution and transaction costs totaled $819 million. Circle said the remaining $473 million covered compliance, liquidity and product development.
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Why is Coinbase relevant to the stablecoin economics dispute?
Coinbase is Circle's largest USDC partner, but it also backs Open USD with Stripe and BlackRock. Open USD plans to pass reserve income to participants after a management fee.
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What does Circle say reserve income must fund?
Circle says reserve income must help cover redemption, compliance and liquidity or resilience costs. It argues those expenses remain even when partners receive a larger share.
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Are USDC redemptions still free?
Circle said standard USDC redemptions remain free and typically settle within two business days. Qualifying customers and some Circle Payments Network flows can access near-real-time redemptions at no cost.
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