Circle Has USDC Revenue Sharing Deal With Second-Largest Crypto Exchange ByBit: Sources
Although details of the Bybit arrangement are unknown, deals between Circle (CRCL) and exchanges like Coinbase (COIN), and more recently Binance, are to foster adoption of USDC by rewarding these platforms with a portion of the interest on Circle's reserves, and one-off payments in case of Binance
Circle, the U.S.-listed stablecoin issuer, has quietly arranged a revenue sharing agreement with Bybit, the world’s second-largest cryptocurrency exchange, according to two people with knowledge of the arrangement.
Circle, which is sandwiched in competition between larger rival Tether and a growing crop of new stablecoins, shares 50% of the yield from reserves backing its U.S. dollar-pegged USDC stablecoin with crypto exchange Coinbase, a long-standing arrangement that has helped proliferate USDC across the industry.
Although details of the Bybit arrangement are unknown, deals between Circle (CRCL) and exchanges like Coinbase (COIN), and more recently Binance, are to foster adoption of USDC by rewarding these platforms with a portion of the interest on Circle's reserves, and one-off payments in case of Binance.
Circle’s pre-IPO filing revealed that Binance received an up-front fee of $60.25 million from Circle, and continues to receive a monthly incentive based on the percentage of USDC balances on the exchange. This ranges from mid- to high-double-digit percent of a fixed SOFR-linked rate, according to the filing.
