Summary
The Coinbase-Circle revenue-sharing agreement operates on a 3-year cycle expiring August 2026. Current terms: Coinbase keeps 100% of USDC reserve interest on-platform, 50% off-platform. Circle has paid $908M+ in distribution fees to Coinbase — more than half of Circle's total revenue. Coinbase now holds leverage by joining Open USD consortium (no mint/burn fees, majority reserve income sharing). Circle CEO Allaire defended USDC's network effects: $30T in Q1 2026 on-chain volume, 80% of dollar-denominated stablecoin transactions. CRCL stock dropped ~17%.
Key Points
- Current deal (2023): Coinbase keeps 100% of USDC reserve interest on-platform, 50% off-platform
- Circle paid $908M+ in distribution fees to Coinbase — more than half of Circle's total revenue
- Coinbase: 25%+ of USDC in circulation (~$19B avg) held across its products
- Coinbase stablecoin-tied revenue: ~$1.35B in 2025 (~19% of total revenue)
- Open USD: no mint/burn fees, majority reserve income sharing with partners
- Circle CEO Allaire: USDC handled $30T in Q1 2026 on-chain volume, 80% of dollar stablecoin transactions
- CRCL stock dropped ~17% on Open USD news; Bernstein kept Outperform/$190 target
- Circle could distribute USDC itself (doubling revenue on paper per Dragonfly's Haddick) but at higher cost
- Open USD governance: 140+ members, but BlackRock/BNY endorsements are not volume commitments