Circle Locks in Coinbase Deal Through 2029, Bets on AI Growth
Circle has locked in its commercial agreement with Coinbase through 2029, solidifying its USDC distribution partnership. The renewed deal comes as Circle's core distribution economics are under scrutiny due to the significant fees taken by Coinbase from Circle's USDC reserve revenue.
The company also announced that it will no longer provide quarterly payouts to USDC holders, instead choosing to maintain a healthy balance sheet and prioritize reinvestment in infrastructure. This decision is meant to drive growth through AI-driven activity rather than near-term yield.
Circle's Agent Stack platform, which enables autonomous AI agents to make and receive payments, has already supported over 900 paid services, with USDC accounting for 99.3% of payment volume moving through the x402 machine-payment protocol.