Circle Taps Bybit in New USDC Revenue-Sharing Deal Amid Stablecoin War

Circle, the U.S.-based issuer of the USDC stablecoin, has reportedly entered into a revenue-sharing agreement with Bybit, the world’s second-largest cryptocurrency exchange, according to sources familiar with the matter. This move aligns with Circle’s ongoing strategy to expand USDC’s market presence through incentives that reward exchange partners.

Circle, currently facing intense competition from stablecoin leader Tether and newer entrants like Robinhood-backed USDG, shares 50% of the yield from reserves backing USDC with Coinbase. This longstanding partnership has significantly boosted USDC adoption. Similarly, Binance received a $60.25 million upfront payment from Circle and continues to earn monthly incentives tied to USDC balances on its platform, according to Circle’s pre-IPO filings.

While exact terms of the Bybit agreement remain undisclosed, industry insiders suggest that such revenue-sharing deals are now a standard part of Circle’s growth playbook. “You should assume any exchange with a meaningful amount of USDC has some agreement with Circle,” said one source in crypto infrastructure.

USDC’s current circulation stands at approximately $62 billion, trailing Tether’s dominant $160 billion supply. With the rise of alternative stablecoins like USDG, which integrates revenue-sharing to encourage usage, Circle’s partnerships with major exchanges aim to secure its competitive foothold in the evolving market.

Neither Circle nor Bybit provided comments on the reported deal. However, the trend of stablecoin issuers forming financial partnerships with exchanges highlights the growing importance of incentives in driving stablecoin adoption and liquidity across trading platforms.

This latest development underscores how stablecoin adoption is increasingly shaped by behind-the-scenes financial arrangements, as issuers race to build network effects in a highly competitive space.