Circle has defended its stablecoin business model amid growing competition from rivals like Open USD, which offers a larger cut of reserve income to partners. In a blog post, Circle's Chief Commercial Officer Kash Razzaghi revealed that the company retained about 7 cents in net profit per revenue dollar during the first half of 2026. The firm reported $1.4 billion in revenue, with $819 million going to distribution and transaction costs. The remaining $473 million covered compliance, liquidity, product development, and stock-based compensation.
Circle's statement comes as Coinbase, its largest USDC partner, backs Open USD, a rival stablecoin network that passes reserve income to partners after a management fee. Open USD, launched in June, aims to let businesses mint and redeem stablecoins without fees. Other competitors, such as the Paxos-led Global Dollar Network (USDG), also share reserve income with participants. Circle argued that reserve income must fund redemption, compliance, and liquidity, and emphasized that standard USDC redemptions remain free and typically settle within two business days.
Circle has been securing additional distribution partners. In September, Binance acquired a $100 million stake in the firm under a five-year deal that includes a fee tied to USDC held through Circle's wallet service. The company also highlighted that qualifying platform customers and payment flows through Circle Payments Network can access near-real-time redemptions at no cost.