Circle has renewed its USDC agreement with Coinbase for another three years, extending the arrangement through 2029 on existing terms. The move keeps the dollar-pegged stablecoin embedded across Coinbase products and preserves the current economic structure between the two companies.

Circle also said it does not plan to introduce quarterly dividends. Management instead intends to use capital for product development, infrastructure, distribution partnerships and other strategic opportunities, according to comments from chief financial officer Jeremy Fox-Geen.

Renewed terms keep current structure in place

The extension reinforces a long-running partnership that remains central to the USDC ecosystem. Under the agreement, Coinbase supports USDC across its product suite and shares in reserve income, while Circle continues to receive an issuer allocation.

By renewing on existing terms rather than announcing a new framework, Circle signaled continuity in one of its most important commercial relationships. The deal also means USDC is set to remain a core part of Coinbase’s offerings through the end of the new term.

USDC circulation and revenue both increased

Circle said USDC circulation reached $73.3 billion at the end of the second quarter, a 19% increase from a year earlier. It also disclosed that 30% of that circulation was held on Coinbase’s platform, underlining the exchange’s importance in USDC distribution.

The company reported total revenue and reserve income of $701 million, up 7%. Those figures provide context for why the Coinbase relationship matters financially as well as strategically, given the role reserve income plays in the business model around USDC.

No quarterly dividend planned

Circle said it has no current plans to start quarterly dividend payments. Instead, management is prioritizing reinvestment into areas it views as more important to long-term growth.

Those areas include USDC distribution, regulated infrastructure, payments and new products, along with broader strategic opportunities. The company’s position suggests it sees more value in expanding the network and utility around USDC than in returning capital to shareholders through regular payouts at this stage.

Distribution remains a key cost and focus area

Circle said it can still pursue distribution arrangements beyond Coinbase, and noted that it works with more than 150 partners. At the same time, the company continues to invest in regulated U.S. infrastructure, including OCC approval to establish Circle National Trust for custody services backing USDC.

Distribution remains a major expense for the company, and Circle said that cost could rise as reserve income grows and additional partners are brought in. Future disclosures are likely to be watched for more detail on the renewed Coinbase term, distribution spending and any eventual changes to the agreement.

Source: crypto.news