Printing $1.4 billion, keeping just 7 cents
Circle brought in $1.4 billion in revenue in the first half of the year. Of that, $819 million went straight to distribution partners and transaction costs—a whopping 59%. More than 150 platforms earn Treasury interest by holding USDC balances. In the end, Circle keeps just 7 cents of every dollar in revenue. In September, Binance also signed a five-year deal and invested another $100 million. This looks less like a business deal and more like working for the distribution channels.
Most of the reserve yield is siphoned off by those channels. When rate cuts come, the spread will narrow, and that 7 cents will get squeezed again. If USDC issuance doesn’t pick up, it’s just existing funds moving around. In the short term, the five-year deal and $100 million investment could fuel a rally—but those chasing the highs will probably end up buying right at the peak of the hype. If key support doesn’t hold, all the buzz around stablecoin settlements won’t be enough to prop up the market.
For those of you holding, are you planning to trim or add to your position on the back of this five-year deal? Drop your cost basis.
$BNB $BTC $USDC
Circle brought in $1.4 billion in revenue in the first half of the year. Of that, $819 million went straight to distribution partners and transaction costs—a whopping 59%. More than 150 platforms earn Treasury interest by holding USDC balances. In the end, Circle keeps just 7 cents of every dollar in revenue. In September, Binance also signed a five-year deal and invested another $100 million. This looks less like a business deal and more like working for the distribution channels.
Most of the reserve yield is siphoned off by those channels. When rate cuts come, the spread will narrow, and that 7 cents will get squeezed again. If USDC issuance doesn’t pick up, it’s just existing funds moving around. In the short term, the five-year deal and $100 million investment could fuel a rally—but those chasing the highs will probably end up buying right at the peak of the hype. If key support doesn’t hold, all the buzz around stablecoin settlements won’t be enough to prop up the market.
For those of you holding, are you planning to trim or add to your position on the back of this five-year deal? Drop your cost basis.
$BNB $BTC $USDC