Who Earns the Interest on Your USDC?

Circle’s second-quarter results, filed with the SEC on August 5, showed $701.3 million in total revenue and reserve income, including $324.6 million of $412.5 million in distribution, transaction and other costs tied to its agreements with Coinbase. Operating income was $34.4 million, and net income from continuing operations was $48.2 million. USDC reserves are held separately and earn interest for Circle, while USDC terms for users outside the European Economic Area state that holders are not entitled to interest earned on the reserves. Average USDC in circulation rose about 25% from a year earlier while reserve income grew about 5%, and any holder rewards come from platforms rather than reserves.