Circle Renews Coinbase Partnership, Rules Out Quarterly Dividends
Circle has renewed its partnership with Coinbase for distributing USDC, preserving a key channel for the stablecoin's growth. The agreement comes as Circle reported $701 million in Q2 revenue and $73.3 billion in USDC circulation. The company also ruled out quarterly dividends, prioritizing growth over shareholder payouts.
Circle CEO Jeremy Allaire said that the partnership with Coinbase has been renewed on its existing terms, ensuring that USDC remains central across all of Coinbase's products. The agreement is a crucial component of Circle's capital strategy, which focuses on reinvesting cash to drive growth rather than returning it to shareholders.
The company now has over 150 distribution agreements for USDC, with opportunities for new partnerships emerging as competition in dollar-backed stablecoins intensifies. Circle's focus on expansion is evident in its Q2 revenue and circulation figures, which show a 7% increase from the same period last year.