Circle, Coinbase Extend USDC Partnership Through 2029, Reject Dividends

Circle and Coinbase have extended their partnership on the USDC stablecoin through June 2029, as announced during Circle's earnings call for the second quarter of fiscal year 2026. The deal, established in August 2023 after the Centre Consortium dissolved, is subject to an automatic rolling continuing period under the companies' collaboration agreement.

Under their arrangement, Coinbase receives a portion of the revenue generated from the reserves backing USDC, while Circle gets an issuer allocation first and the income split based on where the USDC in circulation is held. The renewed partnership does not preclude Circle from seeking to add other distribution channels, as it has previously stated working with over 150 partners.

Circle CFO Jeremy Fox-Geen said management would rather maintain a healthy balance sheet than return capital through routine share buybacks and dividends. The company plans to retain earnings for investments reflecting the market environment and future opportunities in payments, regulated infrastructure, and digital asset services.