Circle has renewed its commercial partnership with Coinbase for USDC distribution through 2029 under an automatic three-year renewal clause. USDC circulation reached $73.3 billion in Q2 2026, a 19% year-over-year increase, with 30% held on Coinbase’s platform. Circle reported $701 million in revenue, up 7%, and stated it will prioritize reinvestment over quarterly dividends to support long-term growth. The renewed deal removes uncertainty around one of the crypto industry’s most significant stablecoin partnerships.
The Coinbase USDC Deal has been renewed through 2029 after Circle confirmed its commercial partnership with Coinbase will continue under an automatic three-year renewal clause. The statement came during Circle’s second-quarter 2026 earnings call, in which CFO Jeremy Fox-Geen also stated that the company had no intentions to pay dividends quarterly.
Circle will continue investing capital in its products, infrastructure, and opportunities to achieve long-term growth as stablecoins become more popular. The partnership traces back to August 2023, when Circle and Coinbase closed the Centre Consortium and made Circle a sole issuer and operator of USDC. According to the deal, Coinbase received a minority equity stake and continued receiving a portion of the income produced from USDC reserves.
The renewed deal does not limit future distribution agreements, and Circle stated there are more than 150 partners that distribute USDC on exchanges, wallets, payments, and financial platforms. USDC circulation amounted to $73.3 billion in Q2, a 19% increase compared to the same period of the previous year. About 30% of the USDC in circulation is stored on Coinbase’s platform, showing the exchange’s continued role in the stablecoin ecosystem.
Total revenue and reserve income of Circle grew by 7% to $701 million, though reduced yields limited its earnings growth. Analysts have increasingly focused on profitability rather than circulation alone, and JPMorgan recently warned that expanding distribution partnerships could pressure margins because reserve income must be shared with additional partners. Fox-Geen said retaining capital instead of paying dividends allows Circle to strengthen its balance sheet and invest through changing market conditions.
The strategy aligns with the company’s broader expansion plans, including the recent approval to establish Circle National Trust, which is expected to support regulated custody services. Implementation of the GENIUS Act is set to introduce comprehensive U.S. stablecoin rules covering reserves, custody, audits, and supervision.
