USDC Is Surging 72% — But Circle's Partners Are Taking a Bigger Cut Than You Think
8d ago · 1 source
USDC's market cap has grown by 72%, solidifying Circle's position as a dominant stablecoin issuer. However, a closer look at the economics reveals that Circle's distribution partners — such as Coinbase and other platforms — are capturing an increasingly large share of the revenue generated by USDC reserves. This raises questions about how sustainable Circle's business model truly is as it scales.
WHY IT MATTERS
Think of USDC like a popular product sold in grocery stores. Circle makes the product, but stores like Coinbase are the ones putting it on their shelves. To get shelf space, Circle has to pay the stores a cut of its profits. The more popular USDC gets, the more stores want a bigger cut — because they know Circle needs them to reach customers. So even though USDC is booming, Circle isn't necessarily keeping all the extra money. A 'stablecoin' is a cryptocurrency designed to always be worth $1, and the company behind it earns money by investing the dollars people deposit. This story shows that growing fast doesn't always mean growing profitably — a lesson that applies far beyond crypto.
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Educational only — not financial advice.