The post Circle paid $461 million in distribution costs from $733 million reserve income in Q4 appeared on BitcoinEthereumNews.com.

Circle sent 63% of Q4 USDC reserve income to distributors, compressing margins. Summary Circle generated $733.4m in Q4 reserve income and paid $460.6m in distribution and transaction costs, leaving $272.8m net reserve income before operating expenses.​ USDC circulation hit $75.3b, up 72% YoY, with average USDC outstanding doubling to $76.2b and a 3.8% reserve return, down 68 bps YoY.​ “USDC on Platform” reached $12.5b, up 459% YoY, with a 17.8% daily weighted share of total supply, concentrating economics around a few key distributors. Circle Internet Financial reported fourth quarter earnings showing the stablecoin issuer paid $460.6 million in distribution and transaction costs against $733.4 million in reserve income, representing approximately 63% of gross yield generated from customer deposits. The company’s USDC stablecoin circulation reached $75.3 billion at year-end, up 72% year-over-year, according to the earnings report. Reserve income increased 69% while adjusted EBITDA grew fivefold compared to the prior year period. Total revenue and reserve income reached $770.2 million for the quarter, with distribution costs accounting for nearly 60% of earnings, according to the financial statements. Circle retained $272.8 million in net reserve income after distribution payments. The company publishes “Revenue Less Distribution Costs” as a core performance metric each quarter. Circle’s net reserve margin settled at 37% in the fourth quarter, meaning the issuer retained approximately $0.37 for every dollar of gross reserve yield. Stablecoin issuers generate income by holding user deposits in reserve portfolios consisting primarily of short-term Treasury securities and similar instruments. Circle reported a 3.8% reserve return rate in the fourth quarter, down 68 basis points year-over-year. Average USDC in circulation doubled from $38.1 billion to $76.2 billion during the period. Distribution costs rose 52% year-over-year, according to the earnings report. Circle attributed the increase to “increased distribution payments” to exchanges, wallets, and fintech platforms that…

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Filed under: News - @ February 26, 2026 5:26 pm