Circle defends USDC economics as Coinbase backs rival Open USD network
In brief
- Circle CCO Kash Razzaghi said the firm kept about 7 cents profit per revenue dollar in H1 2026.
- Circle reported about $1.4 billion in revenue and $819 million in distribution and transaction costs.
- Coinbase, Circle's largest USDC partner, also backs Open USD alongside Stripe and BlackRock.
- Open USD passes reserve income, minus a management fee, to participants; Circle's post didn't name it.
What Circle's numbers show
Circle brought in about $1.4 billion in the first half of 2026, while distribution and transaction costs totaled $819 million, according to the blog post as reported by CoinDesk. The company said the remaining $473 million covered compliance, liquidity and product development. That figure also included about $214 million in stock-based compensation and related costs.
Razzaghi argued those costs don't simply go away.
"The costs of redemption, compliance, and resilience don't disappear just because the issuer declined to pay them," Razzaghi wrote.
The reserve-income pitch from rivals
Coinbase is Circle's largest USDC partner, but it's also a backer of Open USD, along with Stripe and BlackRock, CoinDesk reported. Open USD was unveiled in June. It aims to let businesses mint and redeem stablecoins without fees while passing reserve income (minus a management fee) to participants, and its OUSD token is now live.
Circle's post didn't name Open USD directly. It isn't the only competitor making that offer, either: the Paxos-led Global Dollar Network (USDG) also shares reserve income with participants, per CoinDesk.
Redemptions and new distribution deals
Circle said standard USDC redemptions remain free and typically settle in up to two business days. Qualifying platform customers and payment flows through Circle Payments Network can now access near-real-time redemptions at no cost, the company said.
The company has also been working to secure more distribution partners. In September, Binance bought a $100 million stake in Circle under a five-year deal that includes a fee tied to USDC held through Circle's wallet service, CoinDesk reported.
That leaves the stablecoin market arguing over one question: who gets paid from the interest on reserves, the issuer or the partners distributing the token?
Frequently asked questions
How much did Circle earn per dollar of revenue in the first half of 2026?
Circle Chief Commercial Officer Kash Razzaghi wrote that the company kept about 7 cents in net profit for each dollar of revenue in the first half of 2026, according to CoinDesk. Circle brought in about $1.4 billion, while distribution and transaction costs totaled $819 million.
How does Open USD differ from USDC for business partners?
Open USD, unveiled in June, aims to let businesses mint and redeem stablecoins without fees while passing reserve income, minus a management fee, to participants, CoinDesk reported. Its backers include Coinbase, Stripe and BlackRock, and its OUSD token is now live.
Are USDC redemptions free?
Circle said standard USDC redemptions remain free and typically settle in up to two business days. Qualifying platform customers and payment flows through Circle Payments Network can now access near-real-time redemptions at no cost, the company said.
