Coinbase signed on as a launch partner in the Open USD consortium, a 140-plus member stablecoin initiative that includes Stripe, BlackRock, Visa, and Mastercard, while simultaneously preparing to renegotiate the revenue-sharing deal that has made its relationship with Circle one of the most profitable partnerships in digital assets.
Circle’s stock dropped roughly 17% on the news.
The deal that made Coinbase rich
Under the current revenue-sharing agreement established in 2023, Coinbase keeps 100% of the interest income generated by USDC reserves held on its platform. For USDC held elsewhere, Coinbase takes 50%.
Circle has reportedly paid over $908 million in distribution fees to Coinbase, with those fees accounting for more than half of Circle’s total revenue.
