Stablecoin issuer Circle is reaffirming its business model in light of Coinbase, its largest distribution partner, aligning itself with a competing initiative designed to offer businesses greater income from stablecoin reserves.

Financial Performance Overview

In a recent blog post, Circle’s Chief Commercial Officer, Kash Razzaghi, reported that the company achieved a net profit of approximately 7 cents for every dollar earned in revenue during the first half of 2026. Circle generated around $1.4 billion in revenue, against distribution and transaction costs totaling $819 million.

Allocation of Revenue

The financial report highlighted the allocation of its revenue, indicating that the remaining $473 million went towards essential areas such as compliance, liquidity, and product development. Notably, this figure includes approximately $214 million allocated for stock-based compensation and associated costs.

Competition from Open USD

While Circle continues to be Coinbase’s largest partner for its USDC stablecoin, Coinbase has also invested in a rival project known as Open USD, which was unveiled in June. Open USD aims to enable businesses to mint and redeem stablecoins without incurring fees, while allowing them to benefit from reserve income after a management fee is deducted. This initiative is also supported by major players such as Stripe and BlackRock.

Conclusion

As the competition in the stablecoin market intensifies, Circle’s latest insights into their financial model and profit distribution raise important questions about the future dynamics of stablecoin partnerships and revenue generation strategies.