1 hour ago
9
Running a compliant stablecoin turns out to be an expensive business. Circle, the issuer of USDC, disclosed that for the first half of 2026 it retained just 7 cents of net profit for every dollar in revenue, a figure the company is presenting not as an apology but as a feature.
The disclosure came via a blog post from Chief Commercial Officer Kash Razzaghi, published October 16, 2026, and it reads as a direct counter-punch to a new wave of stablecoin competitors promising to hand partners a much bigger slice of the economics.
Where the money actually goes
Circle reported approximately $1.4 billion in revenue and reserve income for H1 2026. Of that, $819 million, roughly 59 cents per dollar, went to distribution partners and transaction costs.
Another $473 million, or 34 cents per dollar, was reinvested into operations: licensing, banking relationships, compliance infrastructure, and product development.
Razzaghi framed the breakdown as evidence of a sustainable model rather than a stingy one. Circle’s pitch is that rivals distributing a higher percentage of revenue to partners are doing so by skimping on the underlying infrastructure that keeps a stablecoin trustworthy, and eventually redeemable.
The company backs its argument with a regulatory footprint that includes more than 55 licenses and partnerships with over 25 banks. It also counts more than 150 partners sharing in USDC’s economics, with Coinbase holding the largest single share of that revenue distribution.
The transaction volume case
USDC processed more than $36 trillion in on-chain transaction volume during H1 2026.
USDC’s share of global stablecoin transaction volume reached 77% in June 2026, up from 60% the prior year.
What the competition is offering
The most direct competitive pressure cited in the disclosure is Open USD, launched in June 2026. Its pitch centers on free minting and redemption and a model that passes reserve income directly to participants rather than absorbing it into operational costs.
What this means for the broader stablecoin market
Circle’s disclosure does two things simultaneously. It defends the current model to existing partners, particularly Coinbase, which takes the largest distribution share and has a direct financial interest in how USDC’s economics evolve. It also sets up a competitive frame: compliant infrastructure versus higher short-term partner payouts.
Whether the 7-cent margin holds as competition intensifies is the actual question for Circle’s business. A company retaining that little per dollar has limited buffer to absorb pricing pressure. With $36 trillion in H1 transaction volume already behind it, Circle is betting scale can do the work that margin cannot.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.
English (US) ·