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Circle says it retained about 7 cents in net profit for each revenue dollar in the first half of 2026, after $819 million went to distribution and transaction costs. Its defense comes as Coinbase, Circle’s largest USDC partner, backs the competing Open USD network, which plans to pass reserve income to participants after a management fee.
Circle defended the economics of its USDC stablecoin on Friday, saying it retained about 7 cents in net profit per revenue dollar in the first half of 2026 as rivals sought to attract businesses and partners by sharing income from reserves. The explanation comes as Coinbase, Circle’s largest USDC partner, also backs Open USD, a competing network designed to pass reserve income to participants after a management fee.
Circle Chief Commercial Officer Kash Razzaghi said in a blog post that the company generated about $1.4 billion in revenue during the first six months of 2026. Distribution and transaction costs were $819 million. Circle said another $473 million covered compliance, liquidity and product development, including about $214 million in stock-based compensation and related costs.
The figures frame a dispute over how the income earned on assets backing stablecoins should be divided among issuers, platforms and business participants. Circle’s post did not name Open USD directly. That network, backed by Coinbase, Stripe and BlackRock, was announced in June and aims to let businesses mint and redeem stablecoins without fees while distributing reserve income after a management fee. Its OUSD token is now live, according to the report.
Circle said standard USDC redemptions remain free and typically settle within up to two business days. It also said qualifying platform customers and payment flows through Circle Payments Network can access near-real-time redemptions at no cost. Those services and Circle’s cost breakdown are company statements; the report did not independently verify the figures.
The Fight Over Reserve Income
The disagreement could affect which stablecoin networks businesses choose and how much economic value their partners receive. Reserve income is a key part of stablecoin economics: issuers hold assets backing tokens, and the earnings from those assets can be retained by the issuer or shared with platforms and other participants. A model that returns part of that income may appeal to partners seeking revenue, while Circle argues that running a stablecoin also carries substantial costs.
Coinbase’s position makes the competition particularly relevant. It is Circle’s largest USDC partner while also backing Open USD, creating a direct overlap between a major distribution relationship and support for a rival network. The report does not say Coinbase has ended or reduced its USDC relationship. Still, the competing offers raise questions for businesses weighing income sharing against redemption access, liquidity and compliance arrangements.
The issue also reaches users indirectly. Stablecoin partners’ incentives can shape which tokens are supported across payment and trading services. The available information does not establish that Circle’s figures or Open USD’s planned model will determine adoption; it shows that the economics are becoming an explicit point of competition.
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Partners Support Competing Networks
Circle’s post arrives as stablecoin issuers and networks compete for distribution and business use. The company has also been working to add partners: in September 2026, Binance bought a $100 million stake in Circle under a five-year agreement that includes a fee tied to USDC held through Circle’s wallet service, according to the report.
Open USD is not the only rival model described in the report. The Paxos-led Global Dollar Network, associated with the USDG token, also shares reserve income with participants. These arrangements differ from Circle’s defense of spending on redemption, compliance and liquidity. The report does not give comparable financial figures for the rival networks, so it does not establish which model is more profitable or less costly.
Circle’s figures provide a snapshot of its first-half business, not a full comparison of stablecoin issuers. Its $473 million figure includes several categories and stock-based compensation, while the report does not supply a matching cost breakdown for competitors. The comparison is therefore about the business models and incentives being presented, rather than a verified ranking of their financial performance.
“The costs of redemption, compliance, and resilience don’t disappear just because the issuer declined to pay them.”
— Kash Razzaghi, Circle chief commercial officer
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Comparisons Still Lack Detail
The available figures do not provide a direct, like-for-like comparison between Circle and Open USD or other rivals. Open USD’s management fee, the amount of reserve income ultimately passed to participants, and the network’s operating costs are not specified in the source material. It is also unclear how many businesses are using OUSD or how much activity it has attracted.
Circle’s account is a company-published description of its own finances, and the report provides no independent audit or breakdown of every cost category. The relationship between Coinbase and Circle is another open point: Coinbase backs the rival network, but there is no report here that it has changed its USDC distribution or disclosed a plan to do so. The effect of these competing economics on customer choices remains unknown.
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Partner Choices Will Matter
The next indicators will be whether businesses and platforms adopt Open USD or other income-sharing networks, and whether Circle announces changes to its partner terms, redemption services or distribution arrangements. The Binance investment and its five-year agreement are another part of Circle’s effort to expand distribution, but the report does not describe a new milestone under that deal.
Further financial disclosures could help clarify how Circle’s costs compare with rivals’ and how much reserve income participants receive under competing models. For now, Circle has set out its rationale and first-half figures, while the scale and commercial effects of the rival offers remain to be seen.
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Key Questions
What did Circle say about its USDC economics?
Circle said it retained about 7 cents in net profit per revenue dollar in the first half of 2026. It reported about $1.4 billion in revenue and $819 million in distribution and transaction costs.
What is Open USD?
Open USD is a competing stablecoin network backed by Coinbase, Stripe and BlackRock. It aims to let businesses mint and redeem stablecoins without fees and pass reserve income to participants after a management fee.
Has Coinbase stopped supporting USDC?
The report does not say that Coinbase has ended or reduced its USDC relationship. It describes Coinbase as Circle’s largest USDC partner and also a backer of Open USD.
Are USDC redemptions free?
Circle says standard USDC redemptions remain free and typically settle within up to two business days. It also says qualifying platform customers and certain Circle Payments Network flows can access near-real-time redemptions at no cost.
How will this competition affect stablecoin users?
The effect is not yet clear. Competing partner incentives could influence which networks businesses support, but the report provides no adoption figures showing whether Open USD or other rivals are changing customer choices.
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