Circle Expands USDC Strategy With Revenue-Sharing Deal With Bybit

Circle, the issuer of USD Coin (USDC), has reportedly entered a revenue-sharing agreement with Bybit, the world’s second-largest cryptocurrency exchange by trading volume. This partnership marks another key step in Circle’s ongoing strategy to embed USDC deeper into centralized exchange infrastructure and strengthen its presence in the global stablecoin market.

Strategic Timing in a Competitive Market

The deal arrives at a pivotal moment for Circle as it actively seeks to expand USDC’s market share. Despite a circulating supply of around $62 billion, USDC still trails behind Tether (USDT), which commands over $160 billion in circulation. The Bybit collaboration is seen as a calculated move to narrow this gap by leveraging the exchange’s expanding global user base and trading volume.

Following a Proven Revenue-Sharing Model

While the exact financial details remain undisclosed, industry insiders believe the agreement mirrors Circle’s previous revenue-sharing deals. Notably, its partnership with Coinbase involves a 50/50 split of interest income from USDC reserves, while earlier arrangements with Binance included significant upfront payments and monthly incentives.

By offering financial incentives tied to USDC reserves, Circle aims to motivate exchanges like Bybit to promote USDC trading pairs, boost liquidity, and integrate USDC into their platform services.

Strengthening USDC’s Global Position

This move highlights Circle’s strategy of forming mutually beneficial partnerships to grow USDC’s adoption at scale. Sources suggest other major exchanges with substantial USDC holdings may already be engaged in similar, yet unannounced, agreements. These partnerships help exchanges deepen liquidity pools, offer more stablecoin pairings, and enhance user experiences.

Positioning for the Stablecoin Future

As stablecoins become essential infrastructure for both crypto markets and traditional finance, Circle’s deal with Bybit signals its intent to expand through collaborative growth models. Whether this will substantially impact Tether’s dominance is yet to be seen, but it undeniably strengthens USDC’s position in the evolving digital currency ecosystem.

Source: Financefeeds

Voice of Osiz

We see Circle’s latest partnership with Bybit as a strategic and timely move in the increasingly competitive stablecoin space. With Tether still holding a dominant position, aligning financial incentives with high-volume exchanges is a smart way to deepen USDC’s market presence. It’s clear that stablecoin growth in 2025 will be driven by such ecosystem partnerships rather than isolated product pushes.