Circle’s Strategic USDC Revenue Sharing with Bybit Signals Strong Growth Amid Stablecoin Wars
In a significant move to bolster USDC adoption, Circle has secured a revenue-sharing agreement with Bybit, the world's second-largest cryptocurrency exchange. This deal, reminiscent of Circle's existing partnership with Coinbase, involves sharing 50% of the yield from USDC reserves to incentivize platform integration. As stablecoin competition heats up, this collaboration underscores Circle's aggressive strategy to maintain USDC's market position against rivals like USDT. The timing is crucial, with the crypto market showing renewed bullish momentum in mid-2025, suggesting potential upside for USDC's valuation and ecosystem growth.
Circle Secures USDC Revenue Sharing Deal with Bybit Amid Stablecoin Competition
Circle, the U.S.-listed stablecoin issuer, has quietly entered a revenue-sharing agreement with Bybit, the world's second-largest cryptocurrency exchange. The deal, confirmed by two sources familiar with the arrangement, mirrors Circle's existing partnership with Coinbase, where 50% of yield from USDC reserves is shared to drive adoption.
Competition in the stablecoin market intensifies as Circle's USDC trails Tether's dominant USDT, with $62 billion in circulation versus $160 billion. New entrants like Robinhood's unnamed project add pressure, while exchanges like Binance receive upfront fees and monthly incentives tied to USDC balances—revealed in Circle's pre-IPO filing as a $60.25 million initial payment followed by SOFR-linked payouts.
XRP's Organic Rally Contrasts with Bitcoin's Tether-Linked Surge
Bitcoin's recent ascent to a new all-time high above $118,000 has reignited debates about the role of Tether's USDT in fueling market rallies. The issuance of $1 billion in new USDT—Tether's second such mint in a week—coincided with BTC's upward momentum, drawing scrutiny from critics who allege artificial liquidity injections.
XRP proponents argue their asset's price action reflects more organic demand. Unlike Bitcoin, whose gains often correlate with Tether's treasury operations, XRP's movement appears detached from stablecoin dynamics. Tether CEO Paolo Ardoino maintains the recent mint merely replenishes TRON network reserves, with no immediate circulation planned.
Stablecoin Supply Growth Signals Strong Liquidity Backing Crypto Rally
The cryptocurrency market's recent surge, with Bitcoin reaching new all-time highs, appears to be supported by a significant influx of liquidity. Tether's USDT and Circle's USDC, the two largest dollar-pegged stablecoins, have each achieved record supplies this week. Since July, USDC's market cap has grown by $1.3 billion to $62.8 billion, while USDT added $1.4 billion, nearing $160 billion.
The expansion becomes even more striking when viewed from April's market low. USDT's supply increased by $15.2 billion (10.5%), and USDC grew by $2.7 billion (4.6%). Stablecoins, primarily pegged to the U.S. dollar, serve as crucial liquidity providers and trading pairs on crypto exchanges. Their growth is often interpreted as fresh capital entering the crypto economy.
Historical patterns suggest a correlation between stablecoin growth and bitcoin rallies. Caleb Franzen of Cubic Analytics highlighted this relationship in recent analysis, noting that periods of accelerating stablecoin expansion have frequently preceded sharp upward movements in Bitcoin's price.
