Circle discloses 7-cent margin as rivals offer partners a bigger reserve share

Circle has gone public with its cost structure in a defence of USDC economics, disclosing that it retained roughly seven cents in net profit for every dollar of revenue generated in the first half of 2026. Chief Commercial Officer Kash Razzaghi published the figures in a blog post, showing that of approximately $1.4 billion in revenue, $819 million was consumed by distribution and transaction costs, while a further $473 million covered compliance, liquidity, and product development. That residual included around $214 million in stock-based compensation.

The disclosure is a direct response to competitive pressure from networks that share reserve income more broadly with distribution partners. Coinbase, Circle’s largest USDC partner, is also a backer of Open USD alongside Stripe and BlackRock. Open USD, launched in June, allows businesses to mint and redeem stablecoins without fees and routes reserve income, net of a management fee, back to participants. The Paxos-led Global Dollar Network operates on a similar model. Circle’s post did not name Open USD directly, but the framing makes the competitive target plain.

Razzaghi’s central argument is that the costs of redemption, compliance, and operational resilience are real regardless of who formally bears them, implying that higher partner payouts in rival schemes are effectively subsidised by deferring or obscuring those costs. Circle noted that standard USDC redemptions remain free and settle within two business days, while qualifying platform customers and payment flows through Circle Payments Network can access near-real-time redemptions at no charge. Separately, Binance took a $100 million stake in Circle in September under a five-year arrangement that ties fees to USDC held through Circle’s wallet service, suggesting the firm is broadening its distribution base even as the revenue-split debate intensifies.