Circle Internet Financial has renewed its agreement with Coinbase to keep the USDC stablecoin at the center of the exchange's products. The renewal extends the arrangement into 2029, with Circle confirming the deal during its second quarter 2026 earnings call. According to the collaboration agreement filed with the Securities and Exchange Commission, the deal provides for automatic three-year renewals when both companies meet their contractual obligations.
Key Terms
Circle's CFO Jeremy Fox Geen also said the company has no plan to introduce quarterly dividends, with management intending to retain capital for products, infrastructure, and strategic opportunities. The agreement makes Coinbase more than an exchange listing USDC, with 30% of USDC circulation held on Coinbase's platform at the end of the second quarter.
Financial Performance
USDC circulation reached $73.3 billion at quarter end, up 19% from a year earlier, with Circle's total revenue and reserve income rising 7% to $701 million. The renewed agreement does not prevent Circle from signing other distribution arrangements, with the company having over 150 partners with economic incentives to integrate, distribute, and support USDC.
Future Plans
Circle believes shareholder returns from reinvesting in its platform will be 'far greater' than returns from quarterly dividends, according to Fox Geen. The company is investing in regulated U.S. infrastructure, including the establishment of Circle National Trust, and faces continued compliance spending as the federal system moves from legislation toward operating rules.
