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USDC distribution costs with Coinbase hit $1.4B in 2025
Circle said distribution and transaction costs tied to Coinbase totaled $1.4 billion in 2025, about 51% of its revenue and reserve income, even as USDC circulation rose 72% to $75.3 billion in Q4.
Circle reported that its 2025 distribution costs connected to Coinbase totaled $1.4 billion, up from $924.5 million in 2024, according to its 10-K filing, and those costs amounted to roughly 51% of Circle's 2025 revenue and reserve income.
The filings also showed USDC circulation increased 72% year over year to $75.3 billion in the fourth quarter, while Circle's full-year revenue and reserve income rose 64% to $2.7 billion.
Even with the growth accelerating, Circle said it retained a 39% margin after distribution and transaction costs, while those costs consumed about 63% of Circle's fourth-quarter reserve income.
Circle and Coinbase entered their current collaboration agreement in August 2023, with an initial three-year term ending in August 2026, and the companies will discuss potential modifications in good faith before the term expires if they do not agree, the deal automatically renews for another three years.