Circle renews Coinbase USDC deal, rules out dividends

Circle Internet Group renewed its USDC distribution agreement with Coinbase on existing commercial terms, the company confirmed on its second-quarter earnings call.

Jeremy Allaire, Circle’s chief executive, said the renewal “ensur[es] that USDC remains central across all of Coinbase’s products.” The company did not disclose the financial terms of the renewed arrangement.

For the quarter, Circle reported $701 million in combined revenue and reserve income, a 7% increase from the prior year. USDC supply stood at $73.3 billion at quarter end.

Circle said it has more than 150 distribution agreements that provide economic incentives for partners to adopt and promote USDC. The company and Coinbase can pursue additional partner relationships together where they expect adoption to increase materially.

When asked about a regular quarterly dividend, Chief Financial Officer Jeremy Fox-Geen replied, “The short answer is no, we don’t.” Fox-Geen added that Circle intends to keep cash available to fund growth opportunities and to maintain flexibility across market cycles.

Fox-Geen described Circle as a “massive future market growth stock” and stated that returns from investing in the platform would exceed returns from paying quarterly dividends.

Issuers of dollar-backed stablecoins continue to compete for acceptance across exchanges, wallets and payments platforms. USDC’s integration into Coinbase’s product set remains a primary route to liquidity and user access.

The company kept the Coinbase agreement intact and retained capital on its balance sheet to support USDC distribution and platform investment.