IPO documents reveal Coinbase gets 50% of Circle's remaining USDC reserves

According to Decrypt, the S-1 listing document submitted by stablecoin issuer Circle shows that Coinbase, as its core partner, can obtain a 50% share of the remaining income of the USDC stablecoin reserve. In the regulatory documents submitted on Tuesday, Circle disclosed that Coinbase can obtain a 50% share of the "remaining payment base", which is directly derived from the reserve assets supporting the USDC stablecoin; Coinbase's share ratio is directly linked to the number of USDC held by its exchange. When the USDC hosted by the Coinbase platform increases, its share ratio increases accordingly; otherwise, it decreases. This profit-sharing agreement confirms the industry's long-standing understanding that Circle has a symbiotic relationship with its largest distribution partner Coinbase.

In 2024, the proportion of USDC held by the Coinbase platform has increased significantly from 5% in 2022 to 20%, showing its growing influence on Circle's revenue. But the document also warns that this cooperation model makes Circle's revenue subject to Coinbase's business strategy, which is not controlled by Circle. The company stressed that the distribution costs and revenue share paid to Coinbase are directly affected by the exchange operator’s business strategy and policies, which Circle can neither control nor monitor.