Coinbase Is Also Backing Open USD, Challenging
$CRCL ’s USDC Revenue-Sharing Model
Circle faces a direct revenue-sharing challenge: its largest USDC partner, Coinbase, is also backing the competing Open USD network. According to CoinDesk, Open USD will share more reserve income with partners, while USDC’s current revenue-sharing structure is said to be insufficiently attractive to partners. This is no minor development; it strikes at the heart of
$CRCL ’s business model—whether the USDC issuer can continue to maintain its revenue-sharing advantage with leading distribution partners.
From a cash-flow perspective, how stablecoin reserve income is distributed determines how much on-chain activity, payment use, and institutional capital partners are willing to direct to each network. If major players like Coinbase steer more traffic to Open USD, USDC’s circulation and revenue base could come under pressure.
$COIN has a distinctive role in this situation: it is both USDC’s largest partner and a backer of a competing network. This dual position gives it greater bargaining power in stablecoin revenue-sharing negotiations.
The key question is whether Circle will adjust revenue-sharing rates, settlement efficiency, or product features to retain its partners. The available information does not specify revenue-sharing rates or amounts, so the impact on
$CRCL ’s valuation remains qualitative and should not be quantified excessively. If intensifying competition causes USDC’s share to decline,
$CRCL ’s long-term revenue outlook could face pressure; if Circle responds quickly, the impact may be limited.
What is worth watching next is the pace of Coinbase’s actual deployment of Open USD and changes in USDC’s share across major payment and DeFi use cases. If you’re following CRCL, near-term indicators to watch include partners’ public statements and whether USDC’s on-chain circulation shows a sustained trend, rather than making directional judgments based on a single competitive development.
$CRCL $COIN #Stablecoin #USDC #CRCL
The above is a summary of information and personal analysis, and does not constitute investment advice.