Circle, the company behind the USDC stablecoin, paid Coinbase $908 million in distribution costs and revenue sharing during 2024. That figure represents roughly 54% of Circle’s total revenue for the year, making Coinbase less of a distribution partner and more of a landlord collecting majority rent.
The arrangement, formalized through a Collaboration Agreement that took effect on August 18, 2023, is approaching its first major renewal window in August 2026.
The economics of a lopsided partnership
Coinbase earns 100% of the reserve interest generated on USDC held directly on its platform. For USDC held anywhere else in the world, Coinbase still collects 50% of that interest income.
For Coinbase, stablecoin-related revenue is projected to reach approximately $1.35 billion in 2025. USDC-related activities accounted for roughly 13.8% of Coinbase’s total revenue in 2024, a figure large enough that any disruption to the partnership would show up clearly in quarterly earnings.
