Circle Defends USDC Revenue-Sharing Model as Rivals Offer Partners Larger Cuts
(1 hour ago) · 1 source · Summarized by CryptoBipto
Circle is defending the economics of its USDC stablecoin as competing stablecoin issuers attempt to attract Circle's distribution partners by offering them a larger share of revenue. The company argues that its model provides value beyond simple revenue splits. The competitive pressure highlights an intensifying battle among stablecoin issuers for market share and distribution partnerships.
WHY IT MATTERS
Stablecoins are cryptocurrencies designed to maintain a steady value, usually pegged to the U.S. dollar. The companies that issue them earn money by investing the dollars people deposit — for example, by buying U.S. government bonds that pay interest. Think of it like a bank earning interest on deposits, except the depositors (stablecoin holders) typically do not receive that interest directly. Instead, the issuer sometimes shares a portion of that income with the platforms — like exchanges or payment apps — that help distribute the stablecoin to users. This story is about competitors trying to lure away Circle's partners by offering them a bigger slice of that interest income, similar to how a new streaming service might offer content creators better deals to pull them away from an established platform.
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- coindesk.com
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