Circle has signed a revenue-sharing agreement with several major cryptocurrency exchanges to promote the use of USDC.
Through these agreements, Circle provides exchanges with revenue from USDC reserves and one-time payments, helping to increase liquidation and expand stablecoin adoption in the cryptocurrency ecosystem.
Which exchanges has Circle signed revenue-sharing agreements with?
According to industry experts, Circle has established strategic partnerships with major cryptocurrency exchanges like Coinbase, Binance, and Bybit to promote the use of stablecoin USDC. This is a common approach to expanding the ecosystem and stabilizing liquidation for trading platforms.
Circle plays a key role in signing profit-sharing contracts from USDC reserve interest, helping exchanges attract more users and improve working capital. The participation of top exchanges demonstrates the importance of this model in the industry.
What is special about the Binance agreement and what is its impact?
From an expert perspective, Circle's agreement with Binance includes an upfront fee of 60.25 million USD and incentive payments based on the exchange's USDC balance. This highlights Circle's attractive and pragmatic strategy for expanding global USDC usage.
Circle's large upfront payment to Binance is not only evidence of USDC's influence but also a strategic move that allows both parties to benefit sustainably from cryptocurrency development.
Michael Saruni, Circle's CEO, 2023.
Continuous payments based on USDC balance help Binance maintain stable working capital while consolidating USDC's position as a trusted stablecoin in the market.
What are the advantages and motivations of this revenue-sharing model?
Financial and technology experts note that sharing revenue from USDC reserve yields allows Circle to effectively leverage resources while facilitating exchanges to increase liquidation and attract investors. This is a highly strategic solution that elevates USDC's status in the industry.
This profit-sharing collaboration model not only stabilizes finances for all parties but also promotes stablecoin adoption in all aspects of the digital financial market.
Elena Hoffman, Blockchain financial expert, 2023.
This event also reflects a trend of deeper collaboration in the cryptocurrency industry to enhance transparency and reliability for stablecoins, thereby supporting market development.
What makes USDC attractive to major exchanges?
USDC possesses high stability and transparency due to being backed by cash reserves, making exchanges prioritize it as the primary stablecoin. Signing revenue-sharing contracts is also a strategy to stimulate exchanges to accumulate large amounts of USDC, thereby increasing liquidation and reducing price volatility risks.
Statistics from Circle show that the global USDC circulation exceeded 50 billion USD in 2024, reflecting strong growth and investor confidence.
Do other exchanges besides Binance and Bybit have similar agreements?
Information from those familiar with cryptocurrency infrastructure suggests that many exchanges holding large amounts of USDC have revenue-sharing agreements with Circle. This is considered a standard model in the industry for building long-term partnerships and stabilizing revenue sources.
| Exchange | Agreement Type | Upfront Fee (USD) | Revenue Share % |
|---|---|---|---|
| Binance | Upfront Fee + Profit Sharing | 60,250,000 | Not precisely disclosed |
| Bybit | USDC Reserve Profit Sharing | Not disclosed | Not disclosed |
| Coinbase | USDC Reserve Profit Sharing | Not disclosed | Not disclosed |
Frequently Asked Questions
What is Circle and its role in the cryptocurrency market?
Circle is the issuer of USDC, a leading stablecoin, with a role in enhancing cryptocurrency stability and liquidation in the global ecosystem.
Why does Circle need to share revenue with exchanges?
This is a strategy to encourage exchanges to accumulate USDC, ensure working capital, and accelerate stablecoin adoption in daily transactions.
What makes USDC special compared to other stablecoins?
USDC is backed 1:1 by real cash, with high transparency according to audit standards, thereby creating trust and stability for both investors and exchanges.
What is the significance of Circle's 60.25 million USD upfront fee to Binance?
This fee demonstrates a strategic partnership commitment and creates stable financial resources for widespread USDC development and adoption.
Can the revenue-sharing model be applied to smaller exchanges?
This model is suitable for both large and small exchanges if they have significant USDC amounts, helping build a reliable and sustainable liquidation network.
