Circle is defending the economics of USDC against rivals promising businesses a larger share of stablecoin income, arguing that distribution payments must be balanced against the cost of keeping a digital dollar redeemable and usable.
In an October 16 post, Chief Commercial Officer Kash Razzaghi said Circle generated approximately $1.4 billion in revenue during the first half of 2026 and incurred about $819 million in distribution and transaction costs. The company described that combined category as roughly 59 cents of each revenue dollar, with about 7 cents remaining as net profit.
The statement is Circle’s account of its business model, rather than a new set of quarterly results. It does not establish that the entire $819 million was paid directly to commercial partners: the total also includes transaction-related costs.
Who earns the income behind a digital dollar?
A stablecoin’s usefulness to businesses depends partly on its availability through exchanges, wallets and payment providers. Those distributors can help an issuer attract and retain balances, making commercial terms an important part of competition.
Circle says its partners participate through arrangements connected to growing balances and driving use. It identifies Coinbase as its largest and longest-standing partner, while describing a broader network of companies with an economic interest in USDC adoption.
For a distributor, a promise of more reserve income may be attractive. But the percentage shared is only one part of the decision. Redemption access, supported markets, operating reliability and the obligations left with each participant can also affect the value of an arrangement.
Operating costs remain part of the comparison
Circle says approximately $473 million, or 34 cents of each revenue dollar, went toward categories including licenses, banking relationships, liquidity, compliance, product investment and blockchain integrations. Its argument is that a stablecoin network needs funding for those functions even when a rival offers to distribute more income.
These are the issuer’s classifications and interpretation of its spending. They should not be treated as an independent ranking of which stablecoin is safest, cheapest or most useful. A commercial defense does not settle those questions for every customer.
The figures also concern the issuer’s revenue and expenses, rather than an interest rate automatically owed to anyone holding USDC. A distribution partner’s commercial agreement is different from the rights of an ordinary token holder.
Redemption depends on the route and eligibility
The company says standard USDC redemptions remain free through its normal rails, with settlement taking up to two business days. It also describes near-real-time capabilities for customers using its platform or payment network, subject to the relevant arrangements.
That should not be read as a promise that every retail holder can redeem directly at any time without qualification. A person accessing USDC through an exchange or another intermediary also depends on that provider’s terms.
Our explanation of stablecoin pegs and redemption distinguishes the token’s intended dollar value from the practical steps and counterparties involved in converting it back into money.
The dispute is ultimately about how the income from digital-dollar infrastructure is divided, and what each participant receives in return. Circle’s response gives businesses more figures to examine, while leaving them to compare the full service and contractual obligations alongside the headline revenue share.