Circle has signed revenue-sharing agreements with several major cryptocurrency exchanges to promote the use of USDC.
Through these agreements, Circle provides exchanges with a portion of the yield from USDC reserves and a one-time payment, helping to increase liquidity and expand the adoption of stablecoins within the cryptocurrency ecosystem.
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Circle shares revenue with exchanges based on the yield from USDC reserves.
Binance once received an upfront fee of up to $60.25 million from Circle.
Which exchanges has Circle signed revenue-sharing agreements with?
According to analysis from industry experts, Circle has established strategic partnerships with several major cryptocurrency exchanges such as Coinbase, Binance, and Bybit to promote the use of the USDC stablecoin. This is a common approach to expand the ecosystem and stabilize liquidity for trading platforms.
Circle plays a key role in signing profit-sharing agreements from USDC reserve interest, helping exchanges attract more users and improve working capital. The participation of leading exchanges shows the importance of this model in the industry.
What is special about the agreement with Binance and what is its impact?
From an expert perspective, Circle's agreement with Binance includes an upfront fee of $60.25 million and incentive payments based on the exchange's USDC balance. This highlights Circle's attractive and pragmatic strategy in expanding global USDC use.
Circle's large upfront fee to Binance is not only evidence of USDC's influence but also a strategic move that allows both parties to sustainably benefit from the development of cryptocurrency.
Michael Saruni, CEO of Circle, 2023.
The continuous payment based on USDC balances helps Binance maintain stable operational capital while reinforcing 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 liquidity 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 the parties involved but also promotes the adoption of stablecoins in all aspects of the digital financial market.
Elena Hoffman, Blockchain finance 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 attracts large exchanges to USDC?
USDC possesses high stability and transparency as it is backed by cash reserves, making exchanges prioritize its use as the main stablecoin. The signing of revenue-sharing agreements is also a strategy to stimulate exchanges to hold large amounts of USDC, thereby increasing liquidity and reducing price volatility risk.
Statistics from Circle show that the total circulating USDC worldwide exceeds $50 billion in 2024, reflecting strong growth and investor confidence.
Do other exchanges besides Binance and Bybit have similar agreements?
Information from those familiar with the cryptocurrency infrastructure indicates that many exchanges holding a large amount of USDC have revenue-sharing agreements with Circle. This is seen as a standard model in the industry to build long-term partnerships and stabilize revenue sources.
Exchange Agreement Type Upfront Fee (USD) % Revenue Share Binance Upfront Fee + Revenue Share 60,250,000 Not disclosed Bybit Revenue Share from USDC Reserves Not disclosed Not disclosed Coinbase Revenue Share from USDC Reserves Not disclosed Not disclosed
Frequently Asked Questions
What is Circle and what is its role in the cryptocurrency market?
Circle is the issuer of USDC, a leading stablecoin, aimed at enhancing the stability and liquidity of cryptocurrency in the global ecosystem.
Why does Circle have to share revenue with exchanges?
This is a strategy to promote USDC storage exchanges, ensuring operational capital and accelerating the adoption of stablecoins in daily transactions.
What makes USDC special compared to other stablecoins?
USDC is backed 1:1 by real cash, with high transparency according to auditing standards, thus creating trust and stability for both investors and exchanges.
What does Circle's upfront fee of $60.25 million to Binance mean?
This fee represents a commitment to strategic cooperation, while also providing stable financial resources for the development and widespread adoption of USDC.
Is the revenue-sharing model applicable to smaller exchanges?
This model is suitable for both large and small exchanges if they have a significant amount of USDC, helping to build a reliable and sustainable liquidity network.
Source: https://tintucbitcoin.com/usdc-circle-hop-tac-bybit-chia-se-doanh-thu/
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