Author: @lufeieth
Editor: WuBlockchain
TL;DR
- Circle has signed USDC distribution cooperation agreements with over 150 companies, using economic incentives to drive USDC growth, product development, and distribution. For large enterprises capable of significantly expanding USDC usage, Circle can also jointly design collaboration arrangements with Coinbase.
- According to the Circle and Coinbase revenue-sharing arrangement, for USDC outside both platforms, after deducting mutually approved third-party ecosystem incentives, the remaining "Ecosystem Economic Interest" is split 50/50 between Circle and Coinbase.
- The Hyperliquid collaboration arrangement involves Coinbase, Circle, and Hyperliquid. As of quarter-end, approximately 90% of Hyperliquid's held USDC is on the Coinbase platform, with about 10% on the Circle platform; the corresponding on-chain balances are currently $4.952 billion and $550 million, respectively.
- The above 90%/10% refers to the attribution proportion of USDC funds to the Coinbase and Circle platforms and does not equal the final revenue distribution ratio among the three parties. Circle has not disclosed the precise sharing terms of the Hyperliquid collaboration or its agreement with Coinbase.
During Circle (CRCL) Q2 2026 earnings call, management addressed questions regarding USDC distribution channel incentives, the collaboration mechanism between Circle and Coinbase, and the distribution of revenue from USDC on the Hyperliquid platform.
Circle's CEO stated that the company has long used economic incentives to encourage partners to distribute USDC and develop products around it. For large enterprises capable of materially driving USDC growth, Circle also has the capability to jointly design corresponding collaboration arrangements with Coinbase.
However, Circle did not disclose the precise revenue-sharing terms for the Hyperliquid collaboration. What this call confirmed is that Coinbase, Circle, and Hyperliquid are all involved in this arrangement; as of quarter-end, approximately 90% of Hyperliquid's held USDC is on the Coinbase platform, with about 10% on the Circle platform. This fund attribution can also be observed through on-chain addresses.
Circle Has Signed USDC Distribution Cooperation Agreements with Over 150 Companies
Addressing USDC channel incentive mechanisms, Circle's CEO stated:
"We already have a significant number of distribution incentive arrangements in place, and a large number of partners building on our network.
In fact, there are thousands of companies in our network. We have signed distribution cooperation agreements with over 150 companies, using economic incentives to drive USDC growth, develop products based on USDC, and distribute USDC.
We have been doing this for a long time. In fact, we often conduct this type of collaboration jointly with Coinbase."
In other words, incentivizing distribution channels by sharing economic benefits is not a new idea that emerged only after Circle faced OUSD. Circle has long employed a similar model and has signed distribution cooperation agreements with over 150 companies.
However, this does not mean all channels accessing USDC receive the same incentives, nor does it mean Circle shares all related revenue with partners. Circle selects core channels that can drive USDC growth, development, and distribution, then designs distribution incentives based on the specific partner and use case; the actual sharing ratio also varies by collaboration.
Circle and Coinbase Are Willing to Jointly Onboard Large Distribution Channels
Circle's CEO further stated on the call:
"We are fully capable of establishing very high-quality, mutually beneficial distribution arrangements with large enterprises. You just mentioned the example of Hyperliquid, and there are certainly other cases."
He also mentioned:
"We see strong interest from a large number of major enterprises in joining the USDC network. We see this happening all over the world.
When we believe a company can materially drive USDC growth and adoption, we fully have the opportunity to jointly establish corresponding partnerships with Coinbase."
This means Circle may still sign third-party distribution incentive agreements with more large enterprises in the future. Taking large entry points like Samsung Wallet as an example, if they can significantly drive USDC usage and distribution in the future, Circle and Coinbase may jointly design a corresponding cooperation mechanism.
The interests of Coinbase and Circle are not entirely opposed on this issue. For quality third-party channels capable of expanding the USDC scale, both parties have an incentive to first expand the overall USDC market and then distribute the corresponding revenue according to the existing agreement.
According to the Circle and Coinbase revenue-sharing arrangement, for USDC outside both platforms, after deducting mutually approved third-party ecosystem incentives, the remaining portion is called the "Ecosystem Economic Interest," which is then split 50/50 between Circle and Coinbase. Therefore, significant third-party channels receiving incentives do not necessarily mean Circle bears the entire cost alone; Circle and Coinbase can jointly participate in such collaborations.
How Is Hyperliquid's Revenue Actually Distributed?
Autonomous analyst Ken Suchoski asked during the call:
"For USDC on the Hyperliquid platform, 90% of the interest income belongs to Hyperliquid. Does Circle and Coinbase split the remaining 10% on a 50/50 basis?"
Circle's CFO responded:
"Regarding this Hyperliquid collaboration arrangement, Coinbase, Circle, and Hyperliquid are all involved.
Through on-chain data, you can accurately see where the funds in the Hyperliquid platform are located and whether these funds are accounted for on the Circle platform or the Coinbase platform.
As of quarter-end, of the total USDC held by Hyperliquid, approximately 90% was within the Coinbase platform, and approximately 10% was within the Circle platform.
As for how Circle and Coinbase specifically share the revenue, we will not comment further on the precise details of the arrangement between the two parties."
The CFO's response confirmed the involvement of all three parties in the Hyperliquid arrangement but did not directly confirm the specific revenue distribution method proposed by the analyst. The precise sharing ratios and detailed terms between Hyperliquid, Circle, and Coinbase remain undisclosed commercial arrangements.
Here, it is necessary to distinguish between two different "90%/10%": the analyst's "90%" refers to the proportion of interest income received by Hyperliquid; the CFO's "90%/10%" refers to the attribution of Hyperliquid's held USDC funds to the Coinbase and Circle platforms, respectively. The latter is not equivalent to the final revenue distribution ratio among the three parties.
How to Observe Hyperliquid's USDC Attribution On-Chain?
The CFO mentioned that where the USDC in the Hyperliquid platform is located and whether the related funds are accounted for on Circle or Coinbase can be observed through on-chain data.
Currently, the USDC balance attributed to the Coinbase platform is $4.952 billion, corresponding to the Coinbase Treasury Deployer address on HyperEVM.
The USDC balance attributed to the Circle platform is $550 million, corresponding to the Circle CoreDepositWallet address on HyperEVM.
The AQAv2 system actively maintains the USDC balance in the two addresses at approximately 90% and 10%, respectively. System transactions constantly rebalance the two addresses to keep them close to a 1:9 ratio.
Therefore, when observing Hyperliquid's total USDC and its attribution between Circle and Coinbase, the following formula can be used:
Hyperliquid AQAv2 USDC ≈ Circle CoreDepositWallet Balance + Coinbase Treasury Deployer Balance
The balance ratio of the two on-chain addresses is largely consistent with the quarter-end structure disclosed by the CFO on the call: approximately 90% attributed to the Coinbase platform and approximately 10% to the Circle platform.
The Core of USDC Channel Incentives is Jointly Expanding Distribution Scale
From Circle management's response, attracting third-party channels through economic incentives is not a temporary competitive tactic but part of the long-term USDC distribution mechanism. Circle has already signed agreements with over 150 companies and is willing to jointly design collaboration arrangements with Coinbase for large enterprises capable of materially driving USDC growth.
Hyperliquid demonstrates the practical operation of this model: a third-party platform is responsible for expanding USDC usage scale, Circle and Coinbase jointly participate in the collaboration arrangement, and platform funds are accounted for on Coinbase and Circle in a roughly 90% and 10% structure, respectively.
However, on-chain fund attribution only helps the outside world observe which platform USDC is accounted for and cannot directly deduce the final revenue proportion each party receives. Regarding the specific sharing between Hyperliquid, Coinbase, and Circle, what can be determined at this stage is only the broad framework; precise terms remain undisclosed.
