Circle, the issuer of USD Coin (USDC), has entered a revenue-sharing agreement with Bybit, the world's second-largest cryptocurrency exchange by trading volume. This strategic partnership follows Circle's established model of embedding USDC into exchange infrastructure, offering Bybit a share of yield generated from USDC's reserve assets. Though exact terms remain confidential, the deal mirrors prior arrangements like Circle's 50/50 interest split with Coinbase and Binance's $60.25 million upfront payment with recurring incentives.
The collaboration aims to bolster USDC's market position amid intensifying stablecoin competition. Currently, USDC's $62 billion circulating supply lags behind Tether's $160 billion dominance. By incentivizing Bybit—which commands a rapidly growing global user base—to prioritize USDC liquidity, trading pairs, and product integrations, Circle seeks to narrow this gap. Industry sources suggest similar undisclosed agreements may already exist with other major exchanges holding significant USDC reserves.
For Bybit, the deal unlocks new revenue streams beyond trading fees while enhancing platform stability and competitive positioning. The partnership reflects a broader industry trend where stablecoins serve as critical bridges between traditional and crypto finance, enabling efficient cross-border payments, DeFi growth, and institutional onboarding. Circle's revenue-sharing strategy underscores a shift toward collaborative ecosystem development, leveraging exchanges as adoption accelerators for digital dollar infrastructure.