Crypto News Article
The Real Risk Isn’t a Run: Circle’s Payout Shows Who Captures Yield
Circle’s fourth quarter earnings reveal that the company’s reserves increased by 72% year-over-year to $75.3 billion, and reserve income surged 69%. However, the true picture of stability coin (USDC) yield distribution is more complex. The income statement shows that Circle earned $733.4 million in reserve income during the quarter.
Who Captures Yield: Beyond Just Circulation
The payout to users for access to USDC highlights a different architecture where the issuer generates yield and then immediately distributes most of it away to platforms controlling user access. This stark contrast between what Circle earned and what they distributed underscores the need for renegotiation among issuers, distributors, platforms, and regulators.
