Circle renews Coinbase USDC deal, rules out dividends

Circle Internet Group said on Aug. 5 that its Coinbase USDC agreement had renewed on existing terms, keeping the stablecoin at the center of the U.S. exchange’s products. Summary Circle renewed its Coinbase USDC agreement on existing terms for three additional years through 2029. USDC circulation reached $73.3 billion, rising 19% from the same quarter last year despite weakness. Circle generated $701 million in quarterly revenue and reserve income, up 7% year over year. Circle rejected quarterly dividends, favoring reinvestment in products, distribution partnerships and strategic opportunities over payouts. Coinbase held 30% of USDC circulation on its platform at the quarter’s end in June. Circle confirmed the renewal during its second quarter 2026 earnings call.The agreement’s initial term began in August 2023. Circle’s collaboration agreement filed with the Securities and Exchange Commission provides for automatic three year renewals when both companies continue meeting their contractual obligations. The latest renewal therefore extends the arrangement into 2029. Chief Financial Officer Jeremy Fox Geen also said Circle had no plan to introduce quarterly dividends. Management inte...