Coinbase now receives 50% of Circle’s residual revenue from the reserves backing USDC, according to Circle's recent IPO filing with the SEC. The revenue stems from assets primarily comprising U.S. Treasury instruments and cash equivalents, with Circle reporting $1.7 billion in revenue for 2024. The partnership aligns with a growing global use of blockchain payments while also facing regulatory scrutiny over stablecoin interest generation. The revenue-sharing arrangement is based on the amount of USDC held on Coinbase; the more held, the greater Coinbase’s share. USDC currently holds a significant portion of the stablecoin market, with $60.1 billion in circulation. Circle plans to list on the New York Stock Exchange under the ticker CRCL. However, dependence on Coinbase's strategies poses risks for Circle, prompting the company to pursue international partnerships to strengthen its market position against competitors like Tether. Overall, the collaboration emphasizes a mutual benefit that continues to evolve in the crypto landscape.

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