Circle, Coinbase Renew USDC Revenue Deal Through 2029

The renewal took effect automatically on Aug. 18, 2026, extending the Collaboration Agreement signed in August 2023 through 2029 without changes to its terms. Under the contract, Coinbase receives 100% of reserve income on USDC balances held on its exchange and 50% of reserve income on USDC held elsewhere.

SEC filings show the automatic three-year renewal was triggered after both companies declined to alter the agreement at the end of the initial term. Circle had an opportunity to renegotiate and did not exercise it. Circle confirmed the renewal on its Aug. 5, 2026, second-quarter earnings call and noted the agreement does not prevent the company from signing additional distribution arrangements.

At the end of the second quarter, USDC total circulation was $73.3 billion and Coinbase held roughly 30% of that supply on its exchange. Circle paid Coinbase about $908 million in 2024 and roughly $1.4 billion in 2025. In the second quarter of 2026, Circle reported distribution, transaction and other costs of $412 million against $701 million in total revenue and reserve income, a distribution share near 59% and a remaining margin near 41%.

Market attention increased after Coinbase publicly backed Open USD, a rival consortium stablecoin, in June 2026. That endorsement gave Coinbase an alternative distribution path. Some analysts expected the renewal window could produce changed terms, but the parties left the original revenue split intact.

Circle said it will grow revenue sources that do not depend on reserve interest. The company doubled full-year guidance for other revenue to a range of $310 million to $330 million, plans to launch the Arc blockchain in September, and obtained a federal trust charter that allows it to custody reserves.

Coinbase retained support for USDC across retail and institutional products and reported more than 150 partners supporting the token. Stablecoin-related revenue for Coinbase was projected near $1.35 billion for 2025.

Under the current agreement the economics remain fixed through 2029 unless both companies agree to change them during a future negotiation period. The three-year horizon overlaps with anticipated regulatory and market developments, including new federal rules and the potential introduction of bank-issued tokens.