Circle defends USDC model, reveals just 7 cents profit per dollar

Running a compliant stablecoin turns out to be an expensive business. Circle, the issuer of USDC, disclosed that for the first half of 2026 it retained just 7 cents of net profit for every dollar in revenue, a figure the company is presenting not as an apology but as a feature. The disclosure came via a blog post from Chief Commercial Officer Kash Razzaghi, published October 16, 2026, and it reads as a direct counter-punch to a new wave of stablecoin competitors promising to hand partners a much bigger slice of the economics. Where the money actually goes Circle reported approximately $1.4 billion in revenue and reserve income for H1 2026. Of that, $819 million, roughly 59 cents per dollar, went to distribution partners and transaction costs. Another $473 million, or 34 cents per dollar, was reinvested into operations: licensing, banking relationships, compliance infrastructure, and product development. Razzaghi framed the breakdown as evidence of a sustainable model rather than a stingy one. Circle’s pitch is that rivals distributing a higher percentage of revenue to partners are doing so by skimping on the underlying infrastructure that keeps a stablecoin trustworthy, and eventua...