Stablecoin interest distribution economics

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This entry sits underfintech index. Read it withJapan Financial Regulation — Legal Framework for Tokens, Crypto Assets, and Paymentsfor adjacent context andThree-Layer Structure of Japan's Stablecoin Regulatory Regime (JPYC, USDC, Project Pax)for the broader system boundary.

[!info] TL;DR Interest distribution between stablecoin issuers and primary distribution channels is “on-platform”100%/ off-platform50%” model. Mathematically verified with USDC example: Coinbase Q1 2026 stablecoin revenue $305M ≈ $19B In platform ×4%×100%+ $58B Outside the platform ×4%×50%/4 = $306M。

Core calculation formula:

Distributor quarterly income = (In-platform USDC × Reserve annual yield ×100%×1/4)
                + (Off-platform USDC × Reserve Annual Yield ×50%×1/4)

Trigger point: When an issuer (Circle) builds its own platform** (Arc mainnet / self-employed distribution system), it becomes an “off-platform50%” income gradually returns to the issuer. The Arc mainnet is precisely the structural action through which Circle collects that revenue.

Versatility: This model can be deployed in the following scenarios:

PYUSD（PayPal）Distribution arrangement between and Paxos
USD1（World Liberty Financial）Distribution arrangement between and Bridge
JPYC（SBI × JPYC × Circle ring shareholding — Japan stablecoin distribution channel) potential distribution distribution structure of
Historical relationship between USDT (Tether) and Bitfinex (conditions not disclosed)

Typical Trigger Timing: Delivery agreements typically3-5 Signed with annual + automatic renewal clause. In the USDC case2026-08 The renewal of the agreement is a key game point between Circle and Coinbase.

Implications for valuation: The stablecoin revenue of the distributor (Coinbase) is highly dependent on survival of the agreement. If the agreement is canceled, the annual income will be30-60%It can fall. this isThe Blockchain Industry Has Split at the DNA Level into \"On-Chain Finance\" and \"Crypto\"is an important economic driver in the evolutionary path ofCircle Arc Strategy · Issuer Reclaims 50% of Distribution §501 Endgamedirectly promoting the formation of