# Circle defends USDC revenue sharing while Coinbase also backs Open USD, a rival that passes reserve income to distributors

A Bank for International Settlements paper finds that small rises in bank deposit rates slow stablecoin growth, which makes the split of reserve income the central question in the sector's economics.

- Published: 2026-10-18T05:40:05.953Z
- Canonical: https://polylog.news/crypto/2026-10-18/circle-defends-usdc-revenue-sharing-while-coinbase-also-back
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [CoinDesk (Circle)](https://www.coindesk.com/business/2026/10/17/circle-defends-usdc-economics-as-stablecoin-rivals-court-its-partners-with-bigger-cut), [CoinDesk (BIS)](https://www.coindesk.com/business/2026/10/14/banks-could-slow-stablecoin-growth-by-paying-savers-more-bis-paper-finds), [Polylog editors](https://polylog.news), [CryptoSlate](https://cryptoslate.com/stablecoin-cards-are-booming-but-who-makes-money-when-you-swipe/), [Talos](https://www.talos.com/insights/is-openusd-a-threat-to-the-dominance-of-circle-and-usdc)

Circle is defending the economics of USDC as competing issuers offer its distribution partners a larger share of reserve income, CoinDesk reported. Coinbase, Circle's largest USDC partner, also backs Open USD, a rival network that passes re…

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