Circle Internet Group has renewed its USDC partnership agreement with Coinbase, extending one of the most important relationships in the stablecoin industry through 2029.
The renewal was confirmed during Circle’s second-quarter 2026 earnings call. The current agreement, which began in August 2023 after the dissolution of the Centre Consortium, automatically renews for three-year periods when both parties continue meeting their contractual obligations. The latest extension keeps the existing terms in place for another three years.
Under the arrangement, Circle Internet Group remains responsible for issuing and managing USDC, while Coinbase continues supporting the stablecoin across its products and services. Coinbase also receives a share of the income generated from the reserves backing USDC.
USDC circulation reached $73.3 billion at the end of the quarter, representing a 19% increase year-over-year. Circle reported $701 million in revenue and reserve income during the quarter, up 7% from the same period last year. Growth in circulation helped support results, although lower reserve yields reduced some of the potential gains.
The relationship remains highly significant for both companies. Circle reported that approximately 30% of all USDC in circulation was held on Coinbase’s platform at quarter-end, while around 17% was held through Circle’s own platform infrastructure.
Circle also emphasized that the renewed agreement does not prevent it from expanding partnerships elsewhere. The company said it now works with more than 150 distribution partners, including exchanges, wallets, payment providers, and financial platforms that support USDC adoption.
In addition to announcing the renewal, Circle’s management said it has no plans to introduce quarterly dividends. Chief Financial Officer Jeremy Fox-Geen stated that the company prefers to reinvest capital into product development, infrastructure, distribution partnerships, regulatory compliance, and strategic growth opportunities rather than return cash to shareholders.
This approach aligns with Circle’s broader strategy as a growth-focused company. Since its public listing in 2025, Circle has continued investing heavily in regulated infrastructure, including the recent approval of Circle National Trust, which could eventually support institutional custody and management of USDC reserves.
Investors will continue monitoring several key metrics in future quarters:
- Growth in USDC circulation.
- Revenue generated from reserve assets.
- Distribution and partnership costs.
- Expansion of USDC across payment and financial platforms.
- Regulatory developments affecting stablecoins in the United States.
The renewal removes uncertainty around Circle’s most important commercial partnership and reinforces USDC’s position as a core product within Coinbase’s ecosystem, while allowing Circle to continue focusing on expansion rather than shareholder payouts.
