IPO document disclosure Coinbase receives 50% of the remaining income of Circle's USDC reserves

PANews reported on April 2 that according to Decrypt, the S-1 listing documents submitted by stablecoin issuer Circle showed that Coinbase, as its core partner, can obtain a 50% share of the remaining income of USDC stablecoin reserves. In the regulatory filing submitted on Tuesday, Circle disclosed that Coinbase can obtain a 50% share of the "remaining payment base", which is directly derived from reserve assets that support USDC stablecoins; Coinbase's share ratio is directly linked to the amount of USDC held by its exchanges. When the USDC hosted by the Coinbase platform increases, its share ratio increases accordingly; otherwise, it decreases. This share agreement confirms the industry's long-term perception 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 increasing influence on Circle's revenue. But the document also warns that this cooperation model has put Circle's revenue under Coinbase's business strategy, which is not controlled by Circle. The company stressed that the distribution costs and revenue sharing paid to Coinbase are directly affected by the exchange operator's business strategies and policies that Circle can neither control nor supervise.