Circle Extends Coinbase Partnership for USDC Stablecoin Through 2029
Circle has renewed its partnership with Coinbase on existing terms for its USDC stablecoin, extending their agreement into 2029. The deal was first established in August 2023 and allows Coinbase to support USDC across its products while receiving payments linked mainly to the income earned from assets backing the stablecoin.
Circle retains an issuer allocation before dividing the remaining income according to where USDC balances are held, with Coinbase also receiving part of the reserve income generated by USDC held outside either company's platform. The arrangement makes Coinbase more than just an exchange listing USDC, as 30% of USDC circulation was held on its platform at the end of the second quarter.
Circle CFO Jeremy Fox Geen said there are no plans to introduce quarterly dividends, instead choosing to retain capital for products, infrastructure, and other strategic opportunities. He believes shareholder returns from reinvesting in the platform will be 'far greater' than returns from quarterly dividends.