Circle extends USDC deal with Coinbase and rejects dividend

In brief:

• Circle and Coinbase extend their USDC partnership on existing terms
• CFO Jeremy Fox-Geen rules out a quarterly dividend and chooses reinvestment in growth
• USDC is active on 35 blockchains and reaches users in 185 countries

Continued collaboration with Coinbase

Jeremy Allaire, co-founder and CEO of Circle, announced during an earnings call that the agreement with Coinbase has been extended on existing terms. USDC will thus continue to play a central role across all products of the exchange. Circle also said it is holding talks with other strategic partners about further distribution of the stablecoin.

According to Allaire, Circle holds more than 55 licences and registrations in major markets worldwide, which, in his view, makes it difficult for new entrants to build the same position. The infrastructure behind USDC runs on 35 blockchains and is available to users in 185 countries, supported by more than 15 partner banks. Earlier data already showed that USDC circulation grew by 19% and Circle’s revenue rose to $701 million.

No dividend, but reinvestment

CFO Jeremy Fox-Geen said the company has no plans to make quarterly distributions to shareholders. He argues that reinvesting capital in growth and strategic initiatives yields more in the long term for shareholders than paying dividends.

Circle is listed on the New York Stock Exchange and is the issuer of USDC, the second-largest dollar-pegged stablecoin by market value. More details on the results can be read via Yahoo Finance. Coinbase itself recently also removed six trading pairs on its platform.